10.6 (LO 2) Segment margin income statement Kimball Equipment sells equipment to sports enthusiasts. Doug Kimball, the company's president, just received the following income statement reporting the results of the past year. Doug is concerned that two of the company's divisions are showing a loss, and he wonders if the company should stop selling baseball and basketball gear to concentrate solely on soccer gear. Required a. Prepare a segment margin income statement. Fixed cost of goods sold and fixed operating expenses can be traced to each division. b. Should Doug close the baseball and basketball divisions? Why or why not? c. Doug wants to change the allocation method used to allocate common fixed costs to the divisions. His plan is to allocate these costs based on sales revenue. Will this new allocation method change your decision on whether to close the baseball and basketball divisions? Why or why not