Case #2 Plastics Inc. has two production departments, the Blow Moulding Division and the Injection Moulding Division. Projections for the next year are as follows: Sales Variable costs Contribution margin Direct fixed costs Segment margin Allocated common costs Operating income (loss) Blow Moulding Division $600,000 200,000 400,000 120,500 270,500 100,000 170,500 Injection Moulding Division $485,000 150,000 335,000 30,,000 - 35,000 75,000 - 40,000 Total $1,085,000 350,000 735,000 425,000 31,000 175,000 135,000 Required: (A) Determine the operating income for Plastics Inc. as a whole if the Injection Moulding Division is dropped. (B) Should the Injection Moulding Division be eliminated? Discuss why or why not you think the division should be eliminated? Also, what non-quantitative factors should management consider before deciding whether or not to drop a product line