Problem 8-29 (Part Level Submission) Delta Aluminum?s management is considering eliminating product B, which has been showing a loss for several years. The company?s annual income statement is as follows:

A	B	C	Total
Sales	$2,217,000	$1,409,000	$1,804,500	$5,430,500
Variable expenses	1,480,000	802,000	1,095,300	3,377,300
Contribution margin	$737,000	$607,000	$709,200	$2,053,200
Advertising expense	$623,000	$530,000	$520,000	$1,673,000
Depreciation expense	17,700	10,500	20,200	48,400
Corporate expenses	87,500	84,300	106,200	278,000
Total fixed expenses	$728,200	$624,800	$646,400	$1,999,400
Operating income	$8,800	$-17,800	$62,800	$53,800

Advertising expense - Specific to each product. Depreciation expense - Specific to each product; no other use available, no resale value. Corporate expenses - Allocated based on number of employees.

(a)Restate the income statement in segment margin format.

A	B	C	Total
Direct fixed expensesAdvertisingDepreciationSegment marginCommon fixed expensesVariable expensesOperating profitSalesContribution margin	$	$	$	$
Direct fixed expensesSalesDepreciationOperating profitVariable expensesAdvertisingSegment marginCommon fixed expensesContribution margin
Variable expensesAdvertisingDepreciationCommon fixed expensesSegment marginOperating profitContribution marginSalesDirect fixed expenses
AddLessContribution marginSalesAdvertisingCommon fixed expensesOperating profitVariable expensesDepreciationDirect fixed expensesSegment margin
Segment marginDepreciationDirect fixed expensesSalesCommon fixed expensesContribution marginVariable expensesAdvertisingOperating profit
Operating profitDepreciationSalesSegment marginCommon fixed expensesVariable expensesContribution marginDirect fixed expensesAdvertising
AdvertisingContribution marginOperating profitDirect fixed expensesVariable expensesDepreciationSalesSegment marginCommon fixed expenses	$	$	$
AddLessDepreciationSalesCommon fixed expensesDirect fixed expensesContribution marginSegment marginOperating profitVariable expensesAdvertising
Variable expensesCommon fixed expensesOperating profitDirect fixed expensesSalesContribution marginSegment marginAdvertisingDepreciation	$

Problem 8-29 (Part Level Submission) Delta Aluminum's management is considering eliminating product B, which has been showing a loss for several years. The company's annual income statement is as follows: A $2,217,000 1,480,000 B $1,409,000 802,000 C $1,804,500 1,095,300 Total $5,430,500 3,377,300 Contribution margin $737,000 $607,000 $709,200 $2,053,200 Advertising expense Depreciation expense Corporate expenses $623,000 $530,000 $520,000 $1,673,000 17,700 10,500 20,200 48,400 87,500 84,300 106,200 278,000 Total fixed expenses $728,200 $624,800 $646,400 $1,999,400 $8,800 $-17,800 $62,800 $53,800 Sales Variable expenses Operating income Advertising expense - Specific to each product. Depreciation expense - Specific to each product; no other use available, no resale value. Corporate expenses - Allocated based on number of employees. (a) Restate the income statement in segment margin format. A B C Total $ $ $ $ $ $ $ $