please answer A

B and C will give thumbs up thx

- /5 View Policies Show Attempt History Current Attempt in Progress Crane Equipment sells equipment to sports enthusiasts. Doug Crane, the company's president, just received the following income statement reporting the results of the past year. Baseball Soccer Basketball Total Sales revenue $1,260,000 $3,600,000 $2,370,000 $7.230,000 849.000 2,340,000 1.905,600 5,094,600 114,800 187,200 165,000 467,000 296,200 1,072,800 299,400 1,668,400 Variable cost of goods sold Fixed cost of goods sold Gross profit Variable operating expenses Fixed operating expenses Common fixed costs Operating income 169,800 576,000 237,000 982,800 79,200 84.000 72.900 236,100 60,000 129,000 96,900 285,900 ($12,800) $283,800 ($107.400) $163,600 Doug is concerned that two of the company's divisions are showing a loss, and he wonders if the company should stop selling baseball and basketball gear to concentrate solely on soccer gear. (a) Prepare a segment margin income statement. Fixed cost of goods sold and fixed operating expenses can be traced to each division (If the amount is negative then enter with a negative sign preceding the number, e.3.-5,125 or parenthesis, e.g. (5,125).) Baseball Soccer Basketbal Sales Revenue 1.260,000 3,600,000 2 Less : Variable Expenses Cost of Goods Sold 849,000 2,340,000 1. Operating Expenses 169,800 576,000 Contribution Margin 1,018,800 $ $ (b) Should Doug close the baseball and basketball divisions? Doug consider closing the baseball division. Doug consider closing the basketball division eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Ic) Doug wants to change the allocation method used to allocate common fixed costs to the divisions. His plan is to allocate these costs based on sales revenue. Will this new allocation method change your decision on whether to close the baseball and basketball divisions? Changing allocation methods change the decision e Textbook and Media Save for Later Attempts: 0 of 3 used Submit