Bingham Company manufactures and sells Product J. Results for last year for the manufacture and sale of Product J are as follows:

Sales (10,000 units at $160 each)	$1,600,000
Less: Costs:
Variable Production Chosts	$ 960,000
Sales Commissions15% of Sales	240,000
Salaries of Line Supervisors	195,000
Traceable Fixed Advertising Expense	180,000
Fixed General Factory Overhead (Allocated to
Products on the Basis of Square Metres Occupied)	170,000
Total Costs	$1,745,000
Operating Income (Loss)	($145,000)

Bingham Company anticipates no change in the operating result for Product J in the foreseeable future if the product is produced. Bingham is re-examining all of its products and is trying to decide whether or not to discontinue the manufacture and sale of Product J. The company's total fixed factory overhead cost would not be affected by this decision.

1. If discontinuing the manufacture and sale of Product J will not affect the sale of other products, what will be the change in annual operating income?

B) If discontinuing Product J would result in a $30,000 increase in the contribution margin of other product lines, what will be the change in operating income next year due to this action?