Question: Could someone please give me a correct step by step solution for my problemin Excel. Thanks Delta Aluminum's management is considering eliminating product B, which
Could someone please give me a correct step by step solution for my problemin Excel. Thanks

Delta Aluminum's management is considering eliminating product B, which has been showing a loss for several years. The company's annual income statement is as follows: A $2,234,000 1,445,000 B $1,401,000 801,400 C $1,809,700 1,089,900 Total $5,444,700 3,336,300 Contribution margin $789,000 $599,600 $719,800 $2,108,400 Advertising expense Depreciation expense Corporate expenses $601,000 $527,000 $520,000 $1,648,000 15,800 10,700 21,300 47,800 87,800 80,700 106,400 274,900 Total fixed expenses $704,600 $618,400 $647,700 $1,970,700 $84,400 $-18,800 $72,100 $137,700 Sales Variable expenses Operating income Advertising expense - Specific to each product. Depreciation expense - Specific to each product; no other use available, no resale value. Corporate expenses - Allocated based on number of employees. (a) Restate the income statement in segment margin format. A B $ C $ Total $ $ $ $ $ $ (b) What would be the effect on income if product B were dropped? Net income would 009655919_0_10 by $ \fNew Product Selling Price Variable Cost Contribution Margin 11 4 7 Total Fixed Expenses 618400 Break Even point in Units (618400/7) 88343 Units Income Statement after new Produst is Introduced Sales Variable Expenses Contribution Margin Advertising Expenses Depreciation Expenses Corporate Expenses Total Fixed Expenses Operating Income A New Product C Total 2234000 971771 1809700 5015471 1445000 353371 1089900 2888271 789000 618400 719800 2127200 601000 15800 87800 704600 84400 527000 520000 1648000 10700 21300 47800 80700 106400 274900 618400 647700 1970700 0 72100 156500 \fNew Product Selling Price Variable Cost Contribution Margin 11 4 7 Total Fixed Expenses 618400 Break Even point in Units (618400/7) 88343 Units Income Statement after new Produst is Introduced Sales Variable Expenses Contribution Margin Advertising Expenses Depreciation Expenses Corporate Expenses Total Fixed Expenses Operating Income A New Product C Total 2234000 971771 1809700 5015471 1445000 353371 1089900 2888271 789000 618400 719800 2127200 601000 15800 87800 704600 84400 527000 520000 1648000 10700 21300 47800 80700 106400 274900 618400 647700 1970700 0 72100 156500
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