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Trio Sports Manufacturer produces equipment for three sports baseball, basketbal, and golf. The accountants prepared...

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Accounting

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Trio Sports Manufacturer produces equipment for three sports baseball, basketbal, and golf. The accountants prepared a segmented contribution margin statement for the p year based on the three types of products manufactured as shown below. The CEO is concerned with the basketball equipment segment as it has been showing a loss for the few years. Fecommend whether Trio should keep or drop the basketball equipment product line bosed on the following independent scenarios: De not enter dollar signs or commas in the input boves Use the negotivesign for a decrease in insome. lndicate kete oc drepuaing the drepedown lists a) if the line is dropped, assume that all the fued costs relating to the basketball equipment segment would remain with the compary, Change in income from Operations: Thio should the basketball line b) Assume that all the fixed costs relating to the bafketball segment would no longer be incurred by the company if the product line is dropped. Change in Income from Operations The should the bosketball line c) Only 30% of the fixed costs relating to the basketball segment would remain with the company if the product line is dropped. Change in Income from Operations: Trio should the basketball line

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