keep-or-drop for service firm, complementary effects, traditional analysis devern assurance company provides both property and automobile insurance. the projected income statements for the two products are as follows: property insurance automobile insurance sales $4,200,000 $12,000,000 less variable expenses 3,830,000 9,600,000 contribution margin $370,000 $2,400,000 less direct fixed expenses 400,000 500,000 segment margin $(30,000) $1,900,000 less common fixed expenses (allocated) 100,000 200,000 operating income (loss) $(130,000) $1,700,000 the president of the company is considering dropping the property insurance. however, some policyholders prefer having their property and automobile insurance with the same company, so if property insurance is dropped, sales of automobile insurance will drop by 12 percent. no significant non-unit-level activity costs are incurred. required: question content area 1. if devern assurance company drops property insurance, by how much will income increase or decrease? decrease by $fill in the blank 874090febfdcf8c 2 feedback area feedback prepare the segmented income statement to determine the effect of dropping the segment of the business. question content area as a supporting computation, prepare a segmented income statement fo