* Allocated cost based on space occupied. ** Depreciation on fixtures used for display of the various product lines. ***Allocated cost based on sales dollars. Insurance-represents insurance carried on inventories maintained within each of the three product line areas. General administrative-allocated to the product lines on the basis of sales dollars. Total admin costs. will not change if the Houseware line is dropped. Requirement 1: Not to utilize the idle capacity : Should the Houseware line be terminated? Requirement 2: To utilize the idle capacity. Answer requirement (1) again, but this time sales of drugs will increase by $75,000 if Houseware is dropped, assume no change in fixed cost