ClintonVillage sells home, and office furniture. Currently the home product line takes up approximately 50 percent of the company's retail floor space. The president ofClintonVillage 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 by15percent without affecting direct fixed costs. Allocated fixed costs are assigned based on relative sales.

Home Office Total

Furniture Furniture

Sales$1,445,000 $1,112,650 $2,557,650

Less cost of goods sold939,250 809,200 1,748,450

Contribution margin505,750 303,450 809,200

Less direct fixed costs:

Salaries 177,013 177,013 354,026

Other60,690 60,690 121,380

Less allocated fixed costs:

Rent 13,310 9,714 23,024

Insurance 3,360 2,795 6,155

Cleaning 3,800 3,046 6,846

President's salary73,670 54,054 127,724

Other 7,190 5,407 12,597

Net income / (loss)$166,717 $(9,269) $157,448

Determine whetherClintonVillage should discontinue the office furniture line and the financial benefit (cost) of dropping it.(Round answer to 0 decimal places, e.g. 5,275.)

Net income without Office Furniture is $

enter net income without office furniture in dollars

. The company

select an option

should drop

should not drop

the Home Office Furniture product line.