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 $600,000 200,000 400,000 120,500 279,500 100,000 179,500 Injection Moulding Division $485,000 150,000 335,000 300,000 35,000 75,000 - 40,000 Total $1,085,000 350,000 735,000 420,500 314,500 175,000 139,500 Required: (A) Determine the operating income for Plastics Inc. as a whole if the Injection Moulding Division is dropped. 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