Beyonce Company sells two items: peanuts and soybeans. The company is considering dropping soybeans. It is expected that sales of peanuts will increase by 30% as a result. Dropping soybeans will allow the company to cancel its monthly rental of its bean shucker costing $50 a month. The other existing equipment will be used for additional production of peanuts. Beyonce's other fixed costs are allocated and will continue regardless of the decision made. A condensed, budgeted monthly income statement with both products is below: Total Peanuts Sales Soybeans $10,000 4,000 $40,000 14,000 $30,000 Food materials 10,000 Direct labour 3,000 9,000 12,000 1.600 700 900 Equipment rental Other allocated overhead Operating income 2.950 2.000 950 $9.450 $300 $9,150 Instructions Prepare an incremental analysis to determine the financial effect of dropping 2 ENG