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2. Discontinuing a Product Line: Green and White is considering discontinuing one of its product lines. During the past year, the product line's income statement
2. Discontinuing a Product Line: Green and White is considering discontinuing one of its product lines. During the past year, the product line's income statement showed the following $7,382,000 $6,500,000 $882,000 $1,600,000 ales revenue ess: cost of goods sold Gross profit ss: operating expenses Operating income (loss) Fixed manufacturing overhead costs account or 10% o the cost o goods, while on y 30% of the operating expenses are fixed. Since he product ne s Justo e o Green and whites products, only $870,000 of total fixed expenses (the majority of which is advertising) will be eliminated if the product line is discontinued. If the company decides to discontinue the product line, how much will the company's net operating income increase or decrease? Enter an increase as a positive number and a decrease as a negative number
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