Charlie Sheen, Inc., manufactures and sells a number of items, including an garden tiller. The company has been experiencing losses on the garden tiller for some time, as shown on the following contribution format income statement:

Charlie Sheen, Inc. Income StatementGarden Tiller For the Quarter Ended June 30
Sales				$	490,000
Variable expenses:
Variable manufacturing expenses	$	127,000
Sales commissions		41,000
Shipping		16,000
Total variable expenses					184,000
Contribution margin					306,000
Fixed expenses:
Salary of product-line manager		22,000
General factory overhead		109,000	*
Depreciation of equipment (no resale value)		46,000
Advertisingtraceable		112,000
Insurance on inventories		5,000
Purchasing department		51,000
Total fixed expenses					345,000
Net operating loss				$	(39000	)

*Allocated on the basis of machine-hours.

Allocated on the basis of sales dollars.

Discontinuing the garden tillers would not affect the companys sales of its other product lines, its total general factory overhead, or its total purchasing department expenses.

Required
a.	Compute the increase or decrease of net operating income if the garden tiller are continued or discontinued. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive except Decreases in Sales, Decreases in Contribution Margin, and Net Losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

	Keep Garden Tiller	Drop Garden Tiller	Net Operating Income
Sales	$	$	$
Variable expenses:
Variable manufacturing expenses
Sales commissions
Shipping
Total variable expenses
Contribution margin
Fixed expenses:
Salary of line manager
General factory overhead
Depreciation of equipment
Advertisingtraceable
Insurance on inventories
Purchasing department
Total fixed expenses
Net operating Income (loss)	$	$	$