Sales Variable expenses Contribution margin Fixed expenses Operating income Segmented Income Statement For the Year Ended December 31, 2022 Total Company Product A $ 593,000 $ 297,000 276,000 152,000 $ 317,000 $ 145,000 280,000 167,000 $ 37,000 $ (22,000) Direct fixed expenses The company is concerned about the performance of product A, and you have been asked to analyze the situation and recommend to the president whether to continue or discontinue the product. During your investigation, you discover that certain fixed expenses are traceable directly to each product line as indicated here: Total Company $ 102,000 Product A $ 74,000 Product B $ 123,000 51,000 $ 72,000 43,000 $ 29,000 Product B $9,000 Required A Required B Required C The remaining fixed expenses are considered to be corporatewide expenses that have been allocated to each product lin based on sales revenue. Complete this question by entering your answers in the tabs below. Product C $ 173,000 73,000 $ 100,000 70,000 $ 30,000 Required: a. What will be the effect of the decision to discontinue product A on operating income? b. Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporatewide fixed expenses as described. by c. Starting with the segmented income statement, use the information you discovered during your investigation to presen a more appropriately designed segmented income statement. Product C $ 19,000 What will be the effect of the decision to discontinue product A on operating income? Operating income will for the XYZ Company if it discontinues Product A Required A Required B Required C Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporatewide fixed expenses as described. Note: Round intermediate calculations to 2 decimal places. XYZ COMPANY Segmented Income Statement For the Year Ended December 31, 2022 Total Company Product B Sales Variable expenses Contribution margin Direct fixed expenses Common fixed expenses Operating incomerloss Required A Required B Required C Starting with the segmented income statement, use the information you discovered during your investigation to present a more appropriately designed segmented income statement. Sales Variable expenses Contribution margin Direct fixed expenses Segment margin Common fixed expenses Operating income/loss $ $ 0$ $ OS 0 XYZ COMPANY Segmented Income Statement For the Year Ended December 31, 2022 Total Company Product A 0 $ 0 $ 0 Product C 0 $ 0 0 0 $ 0 Product B 0 Product C 0 $ 0 0