Determine whether Ceradyne should discontinue the furniture line and the financial benefit (cost) of dropping it. I will like as soon as I can. Thank you!

Exercise 7-13 Ceradyne sells computer equipment and home office furniture. Currently the furniture product line takes up approximately 50 percent of the company's retail floor space. The president of Ceradyne is trying to decide whether the company should continue offering furniture or concentrate on computer equipment. Below is a product line income statement for the company. If furniture is dropped, salaries and other direct fixed costs can be avoided. In addition, sales of computer equipment can increase by 12 percent without affecting direct fixed costs. Allocated fixed costs are assigned based on relative sales. Computer Home Office Equipment Furniture $1,435,000 $1,104,950 932,750 803,600 502,250 301,350 Total $2,539,950 1,736,350 803,600 180,810 60,270 180,810 60,270 361,620 120,540 Sales Less cost of goods sold Contribution margin Less direct fixed costs: Salaries Other Less allocated fixed costs: Rent Insurance Cleaning President's salary Other Net income / (loss) 13,050 3,410 4,030 78,970 6,500 $155,210 11,035 2,681 2,792 59,120 4,999 $(20,357) 24,085 6,091 6,822 138,090 11,499 $134,853 Determine whether Ceradyne should discontinue the furniture line and the financial benefit (cost) of dropping it. the Home Office Furniture Net income without Home Office Furniture is $ . The company product line. Click if you would like to Show Work for this question: Open Show Work