Beyonce Company sells two items, peanuts and soybeans. The company is considering dropping soybeans. It is expected that sales of peanuts will increase by 40% as a result. Dropping soybeans will allow the company to cancel its monthly rental of its bean shucker costing $100 a month. The other existing equipment will be used for additional production of peanuts. One employee earning $200 per month can be terminated if soybean production is dropped. Beyonces 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 Soybeans Peanuts Sales $18,000 $8,000 $10,000 Food materials 4,500 2,000 2,500 Direct labour 3,200 1,200 2,000 Equipment rental 2,900 2,600 300 Other allocated overhead 3,100 2,100 1,000 Operating income $4,300 $ 100 $4,200 Required: Prepare an incremental analysis to determine the financial effect of dropping soybean production.