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CullumberIndustries manufactures light fixtures for home, retail, and industrial customers. The retail line has been showing losses for several years, and management is considering dropping

CullumberIndustries 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

$552500

$322500

$832500

$1707500

Variable costs

359700

219800

683100

1262600

Contribution margin

192800

102700

149400

444900

Fixed costs

127500

132500

117500

377500

Operating income

$65300

$(29800)

$31900

$67400

Of the fixed costs, $322500 of it is common costs that have been allocated equally to each product line. What will total operating income be if Cullumber drops the retail line?

$(10300)

$19700

$97200

$77700

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