QUESTION 2 Dropping or m a segment When Mr. Sylvain W president and chief executive of W lnc., first saw the segmented income statement below, he ew into his usual rage: "When will we ever start showing a real prot? I'm starting immediate steps to eliminate those two unprofitable lines!" Pro duct Lines Total E E E Sales $250,000 $100,000 $75,000 $75,000 Variable expenses 119 000 37,500 35,000 47,000 Contribution margin 131,000 63,000 40,000 28,000 Traceable xed expenses* 98,000 31,000 37,000 30,000 Common expenses, allocated32,900 18,000 10,500 4,400 Operating income (loss) 8 100 $14,000 $0,500) $6,400) *These traceable expenses could be eliminated if the product lines to which they are traced were discontinued. Required: Recommend which segments, if any, should be eliminated. Prepare a report in good form to support your