Coronado's currently manufactures art supplies, including markers. The marker sales generate total contribution margin of $85,800. Due to its fixed costs, however, that product line currently shows a net operating loss of $9,400. If Coronados drops markers from its product categories, it will save $76,500 in direct fixed costs associated with the marker production activities. Should Coronados drop its marker product line? Why or why not? (Enter loss using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).)

Keep Drop

Operating income $ $

Coronado's (should / should not) drop the marker product line.

The company will be (better off/ worse off) by $ if it drops the product line.