41. If Umai Poke decides not to sell the unfrozen poke anymore, what is the expected change in operating income? (=$1,000)

42. Based on your answer to Question 41, should Umai Poke drop the unfrozen poke? (Yes)

Questions 41 - 42 Umai Poke sells three types of poke and the 2019 income statement is presented: Salt & Pepper Poke $330,000 Spicy Poke $370,000 Unfrozen Poke Total $265,000 $965,000 Net Sales Revenue Cost of Goods Sold Variable Fixed Gross Profit Selling and Administrative Expenses Variable Fixed Operating Income $180,000 $28,000 $122,000 $200,000 $28,000 $142,000 $210,000 $590,000 $28,000 $84,000 $27,000 $291,000 $15,000 $19,000 $88,000 $15,000 $19,000 $108,000 $15,000 $19,000 ($7,000) $45,000 $57,000 $189,000 Umai Poke estimates that dropping unfrozen poke will decrease fixed cost of goods sold by $25,000 and decrease fixed selling and administrative expenses by $16,000