Dropping Product Lines: Refer to the data for Campus Bookstores that appears in Illustration 1 2-8. Assume that all facts are the same as presented in Illustration 12-8 except the following:

1. Salaries listed under fixed costs are $40,000 under all three alternatives (that is, there is no reduction in fixed cost salaries under alternative I).

2. Under alternative 2, rent increases to $32,000.

Required: Prepare a new comparison of the three choices; namely, status quo, alternative I, and alternative 2.