CraneIndustries manufactures light fixtures for home, retail, and industrial customers. The retail line has been showing losses for several years, and management is considering dropping the line. Recent income statements have been very similar to the following information which was prepared for the most recent year:

	Home	Retail	Industrial	Total
Sales	$550200	$320200	$830200	$1700600
Variable costs	357600	217700	680700	1256000
Contribution margin	192600	102500	149500	444600
Fixed costs	125200	130200	115200	370600
Operating income	$67400	$(27700)	$34300	$74000

Of the fixed costs, $315600 of it is common costs that have been allocated equally to each product line. What will total operating income be if Crane drops the retail line?

$26500

$101700

$(3500)

$77500