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Crane Equipment sells equipment to sports enthusiasts. Doug Crane, the company's president, just received the following income statement reporting the results of the past year. Baseball Soccer Basketball Total Sales revenue $1,260,000 $3,600,000 $2.370.000 $7.230,000 Variable cost of goods sold 849,000 2.340,000 1,905,600 5,094.600 Fixed cost of goods sold 114,800 187.200 165.000 467.000 Gross profit 296.200 1.072.800 299,400 1,668,400 Variable operating expenses 169,800 576,000 237,000 982.800 Fixed operating expenses 79,200 84.000 72.900 236,100 Common fixed costs 60,000 129,000 96.900 285.900 Operating income ($12.800) $283,800 ($107.400) $163,600 Doug is concerned that two of the company's divisions are showing a loss, and he wonders if the company should stop selling baseball and basketball gear to concentrate solely on soccer gear Sales Revenue es > Sales Revenue Traceable Fixed Expenses Operating Income Common Fixed Expenses Variable Expenses Segment Margin Contribution Margin Operating Expenses Cost of Goods Sold Variable Expenses Contribution Margin > Traceable Fixed Expenses Cost of Goods Sold Common Fixed Expenses Sales Revenue Less : Variable Expenses Operating Income Baseball Soccer Basketball $ $ $ $ $ $ Total $

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