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Meditate to Elevate is a wholesaler of gear to yoga studios. The company sells three product lines: Ujjayi, Drishti, and Tapas. A traditional departmental income statement for the quarter ended 9.30.19 is shown below: Sales Revenue (Cost of Goods Sold) Gross Profit (Operating Expenses) Operating Income Ujjayi $25,000 (15,000) 10,000 (7,500) $2,500 Drishti $20,000 (9,000) 11,000 (5,000) $6,000 Tapas $15,000 (13,500) 1,500 (2,250) $(750) 35% of the cost of goods sold for each product line is variable. The remaining cost of goods sold consists of traceable fixed costs. Operating expenses include $6,000 common fixed costs that have been allocated to each department as follows: $2,500 to Ujjayi $2,000 to Drishti, and $1,500 to Tapas. The remaining operating expenses consist of variable costs. Which of the following statements is correct with regard to the above information? (each statement is independent) O A. Ujjayi's contribution margin percentage is 20%. B. If Tapas is dropped, the company's operating income would increase by $750. OC. Operating income using the segmented income statement format would be $13,750. OD. The company's common fixed costs would decrease by $1,500 if Tapas is dropped. O E. Total traceable costs for Drishti equal $12,000

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