Calibri (Body) , | | 11 ' | A. A. 1 Copy aste Format Problem 2 Nederlander Company makes 3 products: Fiets, Klompen & Kaas. Nederlander is considering dropping the Fiets product line based on the following financial data from ast year: Fiets KlompenKaas 5,000 10,000 15,000 2.000 3,500 7000 3,000 6,500 8,000 Sales Variable costs Contribution margin 800 1,500 1,250 600 1,300 1,600 400 500 15002.500 3,500 3,200 5,7006,850 800 1,150 Advertising expense Depreciation of special equipment Salaries of segment manager Indirect fixed costs Total fixed costs Net operating income (loss) 300 -200.00 The special equipment used exclusively by each segment can be sold for approximately book value Complete the following table to show the effect on Nederlander's profit if it keeps or eliminates the Fiets product line Keep Fiets Drop Fiets Contribution margin 3,000 800 | co 600 300 1,500 200,00-2,700X 0 Advertising expense Depreciation of special equipment Salaries of segment manager Indirect fixed costs 0 2,700X Net operating income (loss) Incremental profit (loss) Should Nederlander drop the Fiets? No