Total $10,000,000 7,100,000 Shown below is a segmented income statement for Mullett Marina's three main boating service lines: Winter Boat Fuel & Boat Storage Concessions Maintenance Sales revenue $4,000,000 $1,000,000 $5,000,000 Less: Variable expenses 2,000,000 200,000 4,900,000 Contribution margin $2,000,000 $ 800,000 $ 100,000 Less direct fixed expenses: Garage/warehouse rent 700,000 55,000 350,000 Supervision 50,000 70,000 150,000 Equipment depreciation 250,000 75,000 100,000 Segment margin $1,000,000 $ 600,000 $ (500,000) $2,900,000 1,105,000 270,000 425,000 $1,100,000 Relevant fixed costs associated with this line include 60% of Boat Maintenance's garage/warehouse rent and 50% of Boat Maintenance's supervision salaries. In addition, assume that dropping the Boat Maintenance service line would reduce sales of the Winter Storage line by 20% and sales of the Boat Fuel & Concessions line by 10%. All other information remains the same. Required: 1. If the Boat Maintenance service line is dropped, what is the contribution margin for the Boat Fuel & Concessions line? For the Winter Storage line? Contribution Margin Winter storage line 1.600.000