Ceradyne Village sells home, and office furniture. Currently the home product line takes up approximately 50 percent of the company's retail floor space. The president of Ceradyne Village is trying to decide whether the company should continue offering office furniture or concentrate on home furniture. Below is a product line income statement for the company. If office furniture is dropped, salaries and other direct fixed costs can be avoided. In addition sales of home furniture can increase by 16 percent without affecting direct fixed costs. Allocated fixed costs are assigned based on relative sales.

Home Furniture Office Furniture Total

Sales $1,405,000 $1,081,850 $2,486,850

Less cost of goods Sold 913,250 786,800 1,700,050

Contribution margin 491,750 295,050 786,800

Less direct fixed costs:

Salaries 177,030 177,030 354,060

Other 59,010 59,010 118,020

Less allocated fixed costs:

Rent 12,950 9,748 22,698

Insurance 3,080 2,745 5,825

cleaning 3,670 3,193 6,863

president's salary 74,650 59,131 133,781

other 7,070 5,786 12,856

Net Income/(loss) $154,290 $(21,593) $132,697

Determine whether Ceradyne Village should discontinue the office furniture line and the financial benefit (cost) of dropping it.

Round answer to 0 decimal places.

Net Income without office furniture is $ ________________. The company should drop or should not drop the Home Office Furniture.