Cinrich sells computer equipment and home office furniture. Currently the furniture product line takes up approximately 50 percent of the company's retail floor space. The president of Cinrich is trying to decide whether the company should continue offering furniture or concentrate on computer equipment. Below is a product line income statement for the company. If furniture is droppe salaries and other direct fixed costs can be avoided. In addition, sales of computer equipment can increase by 12 percent without affecting direct fixed costs. Allocated fixed costs are assigned b on relative sales. Computer Home Office Equipment Furniture Total Sales Less cost of goods sold Contribution margin Less direct fixed costs: $1,405,000 $1,081,850 $2,486,850 786,800 1,700,050 786,800 913,250 491,750 295,050 177,030 59,010 Salaries Other 177,030 354,060 118,020 59,010 Less allocated fixed costs: 22,698 5,825 6,863 59,131 133,781 12,856 $154,290 $(21,593) $%132,697 9,748 2,745 3,193 Rent Insurance Cleaning President's salary Other 12,950 3,080 3,670 74,650 7,070 5,786 Net income / (loss) Determine whether Cinrich should discontinue the furniture line and the financial benefit (cost) of dropping it. Net income without Home Office Furniture is $ The company the Home Office Furniture product line