Company Ltd. has two product lines, milk chocolate bars and chocolate covered almonds. The company is not doing as well as hoped in the following income statement.
Sales	200,000
Variable Expenses	104,000
Fixed Expenses	90,000
Operating Income	6,000
Sales for chocolate bars and chocolate almonds are $80,000 and $120,000 respectively. The company focuses on using organic high quality almonds in this product and thus variable expenses are 65% of sales. Since chocolate almonds is a new product, the company has been advertising more aggressively. Thus, the traceable fixed costs for this product line are $30,000. Corporate fixed costs total $10,000. Required a) What is the impact to operating income if the company were to drop the chocolate almonds product line? b) Should the company drop the product line?