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

Carla VistaIndustries 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

Industrial

Total

Sales

$550900

$320900

$830900

$1702700

Variable costs

358500

218100

681100

1257700

Contribution margin

192400

102800

149800

445000

Fixed costs

125900

130900

115900

372700

Operating income

$66500

$(28100)

$33900

$72300

Of the fixed costs, $317700 of it is common costs that have been allocated equally to each product line. What will total operating income be if Carla Vista drops the retail line?

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