- Begin b Sales Less Data table line. (Use a r A B 1 Sales revenue $ 5,250,000 Contrib 2 Less: Cost of goods sold 6,200,000 Less 3 Gross profit (950,000) Operat 4 Less: Operating expenses 1,500,000 Prepare disconti 5 Operating income (loss) $ (2,450,000) will affect Cre More info Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are fixed. Since the bran flakes line is just one of the company's cereal operations, only $725,000 of direct fixed costs (the majority of which is advertising) will be eliminated if the product line is discontinued. The remainder of the fixed costs will still be incurred by the company Print Done - at