Keep or Drop $2($a$)$ Conceptual Connection: Prepare segmented income statements for System A and the headsets assuming that System B is dropped. Round your

answers to the nearest dollar. Input expenses as positive numbers. $($Note: Be sure to complete $2($b$)$ below the statement.$)$

AudioMart

Segmented Income Statement

System A and Headset

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$2($b$)$ Should system B be dropped?

AudioMart is a retailer of vintage vinyl records and equipment. The store carries two popular sound systems$-$System A and System B$.$ System A$,$ of slight

higher quality than System B$,$ costs $$22$ more. With rare exceptions, the store also sells a specialized headset when a system is sold. The headset can be

used with either system. Variable$-$costing income statements for the three products follow:

$*$This includes common fixed costs totaling $$17,900,$ allocated to each product in proportion to its revenues.

The owner of the store is concerned about the profit performance of System B and is considering dropping it$.$ If the product is dropped, sales of System A

will increase by $30\%,$ and sales of headsets will drop by $24\%.$ Round all answers to the nearest whole number.

Required:

Prepare segmented income statements for the three products. Round your answers to the nearest dollar. Input expenses as positive number

AudioMart

Segmented Income Statement

System A$,$ System B$,$ and Headset