Keep or Drop$-($Please check the screenshots for info.$)$ The text format is confusing

AudioMart is a retailer of vintage vinyl records and equipment. The store carries two popular sound systems$$System A and System B$.$ System A$,$ of slightly higher quality than System B$,$ costs $$21$ 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:

System A$$System B Headset$$Sales$$44,800$ $$32,500$$$8,100$ Less: Variable expenses$19,60025,9003,500$ Contribution margin$$25,200$$$6,600$$$4,600$Less: Fixed costs $*10,10017,5003,000$Operating income $($loss$)$$$15,100$$$(10,900)$$$1,600$

$*$This includes common fixed costs totaling $$17,500,$ 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 $32\%,$ and sales of headsets will drop by $25\%.$ Round all answers to the nearest whole number.

Required:

Question Content Area

$1.$Prepare segmented income statements for the three products. Round your answers to the nearest dollar. Input expenses as positive numbers.

$2($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.$)$

$3($a$)$Prepare segmented income statements for System A$,$ System C and the headsets. Round your answers to the nearest dollar. Input expenses as positive numbers. $($Note: Be sure to complete $3($b$)$ below the statement.$)$