1.Shine Bright Company has three product lines-D, E, and F. The following information is available: E Sales D $60,000$38,000 $26,000 F Variable costs 36.000 18,000 12,000 Contribution margin 24,000 20,000 14,000 Fixed expenses 12,000 15,000 16,000 Operating income (loss) $12,000 $5.00 $2.000 Shine Bright Company is thinking of dropping product line F because it is reporting an operating loss. Assuming fixed costs are unavoidable, if Shine Bright Company drops product line F and does not replace it, what effect will this have on operating income? Should they drop Product F? **Show your work to support your answer. 2. Shine Bright Company has three product lines-D, E, and F. The following information is available: E Sales D $60,000$38,000 $26,000 F Variable costs 36.000 18.000 12.000 Contribution margin 24,000 20,000 14,000 Fixed expenses 12.000 15.000 16,000 Operating income (loss) $12,000 $5,000/2,000 Shine Bright Company is thinking of dropping product line F because it is reporting an operating loss. Assuming fixed costs are unavoidable, if Shine Bright Company drops product line F and can use the space formerly used to produce product F to generate $17,000 of net income per year, what effect will this have on operating income? Should they drop Product F? **Show your work to support your answer.