support your answer.

QUESTION 2 Dropping or Retaining a segment When Mr. Sylvain Laprade, president and chief executive of Laprade, Inc., first saw the segmented income statement below, he flew into his usual rage: "When will we ever start showing a real profit? I'm starting immediate steps to eliminate those two unprofitable lines!" Product Lines Total U V Sales $250,000 $100,000 $75,000 Variable expenses 119,000 37,500 35,000 Contribution margin 131,000 63,000 40,000 Trace able fixed expenses* 98,000 31,000 37,000 Common expenses, allocated 32,900 18,000 10,500 Operating income (loss) $ 100 $ 14,000 $(7,500) W $75,000 47,000 28,000 30,000 4,400 $(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