Question: Just need help with section C please. Metlock would be by $ Avalue-driven carmanufacturer, Metlock, started its business morethan 50years ago, making and sellinga sedan

Just need help with section C please.
Metlock would be by $
Avalue-driven carmanufacturer, Metlock, started its business morethan 50years ago, making and sellinga sedan body style. Sedans were popularatthe time, and this one drove thesuccessof Metlockfor years dueto its practical yet stylish nature_Astimes changed, Matlock designed models in different body styles, and thosemodels haveoutpacad sedans, as follows. Sales Variable costs Contribution margin Fixed costs Operating income (loss) Sedan 696,000 504,000 806,400 895,000 Truck Izos,ooo $860,000 Van 798,000 $104,000 The income statements above reflect the second consecutive year the sedan category has lost money. Metlock is concerned about dropping this vehicle, hmvever, since the company's success was originally built on it Matlock believes it can save $604,800 in fixed costs associated with the sedans if it drops that vehicle category. Should the company seriously consider dropping it? much better or financially, wculd it be by dropping the sedan? Matlock be V by S Assume that 75%ofthe fixed costs shown in the original information. for product lines, are direct fixed costs. The costs, allocated tothe product lines accordingto their Recasttheproduct-line incomestatements detailing the direct and allocated fxadcostsforeach, including a subtotal for segment margin and an overall total column. either a r.tive sign preceding the e.g. 45 eg (45)J Sedan Truck Van Total Sales Less: Variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Allocated fixed costs Operating income
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