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Blossomlndustries manufactures light fixtures for home, retail, and industrial customers. The retail line has been showing losses for several years, and management is considering dropping

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Blossomlndustries manufactures light fixtures for home, retail, and industrial customers. The retail line has been showing losses for several years, and management is considering dropping the line. Recent income statements have been very similar to the following Information which was prepared for the most recent year: Home Retail Total Industrial $832300 Sales $552300 $322300 $1706900 Variable costs 359500 220000 683000 1262500 192800 102300 149300 444400 Contribution margin Fixed costs Operating income 127300 132300 117300 376900 $65500 $130000) $32000 $67500 of the fixed costs, 5321900 of it is common costs that have been allocated equally to each product line. What will total operating income be it Blossom drops the retail line? 597500 $77300 $20200 509800

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