Problem 2 Nederlander Company makes 3 products: Fiets, Klompen & Kaas. Nederlander is considering dropping the Fiets product line based on the following financial data from last year. Klompen Kaas 18,000 27,000 6,300 12,600 11,700 14,400 Fiets Sales 9,000 Variable costs 3,600 Contribution margin 5,400 Fixed costs: Advertising expense 1,440 Depreciation of special equipment 1,080 Salaries of segment manager 540 Indirect fixed costs 2,700 Total fixed costs 5,760 Net operating income (loss) 360.00 2,700 2,250 2,340 2,880 720 900 4,500 6.300 10,260 12,330 1,440 2,070 The special equipment used exclusively by each segment can be sold for approximately Complete the following table to show the effect on Nederlander's profit if it keeps or eliminates the Fiets product line. Keep Fiets Drop Fiets Contribution margin 5,400 Advertising expense 1,440 Depreciation of special equipment 1,080 X Salaries of segment manager 540 X Indirect fixed costs 2,700 Net operating income (Toss) -360.00 Incremental profit (loss) Should Nederlander drop the Fiets? No