Dropping Or Retaining A Segment JayCo Ltd. currently manufactures three different tennis racquets: The Power, The Accelerator and The Balanced. Data on sales and expenses for last year is provided. Total $ Sales Variable MOH and selling expenses Contribution margin Fixed Expenses: Advertising, traceable The Power 456,500 296,725 159,775 1,370,556 $ 729,300 $ 641,256 $ The Accelerator $ 489,056 $ 220,075 $ 268,981 The Balanced $ 425,000 $ 212,500 $ 212,500 $ $ Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (loss) 47,000 $ 25,500 $ 208,800 $ 213,500 494,800 146,456 15,000 $ 8,500 $ 69,800 $ 78,500 $ 171,800 $ (12,025) $ 20,000 $ 8,500 $ 68,500 $ 75,000 172,000 $ 96,981 $ 12,000 8,500 70,500 60,000 151,000 61,500 Jason is concerned about the viability of The Power racquet, despite its popularity, and is wondering if JayCo Ltd. should stop making this product. The special equipment used to produce the tennis racquets has no resale value and does not wear out. Should production and sale of The Power be discontinued? Show calculations and Explain. (Calculations) (You may not nee Recast the above data in a format that would be more usable to management in assessing the long-run profitability of the various product lines. (i.e. Create a segmented income statement)