Determine whether Foress Village should discontinue the office furniture line and the financial benefit (cost) of dropping it. (Round answer to 0 decimal places, e.g. 5,275.)

Foress Village sells home, and office furniture. Currently the home product line takes up approximately 50 percent of the company's retail floor space. The president of Foress Village is trying to decide whether the company should continue offering office furniture or concentrate on home furniture. Below is a product line income statement for the company. If office furniture is dropped, salaries and other direct fixed costs can be avoided. In addition, sales of home furniture can increase by 15 percent without affecting direct fixed costs. Allocated fixed costs are assigned based on relative sales. Home Furniture $1,440,000 Office Furniture $1,108,800 806,400 302,400 Total $2,548,800 1,742,400 806,400 936,000 504,000 Sales Less cost of goods sold Contribution margin Less direct fixed costs: Salaries Other Less allocated fixed costs: Rent Insurance 176,400 55,440 176,400 55,440 352,800 110,880 12,740 3,540 3,830 9,838 2,510 3,204 58,662 5,562 $19,216) Cleaning President's salary Other Net income / (loss) 22,578 6,050 7,034 132,242 12,372 $162,444 73,580 6,810 $171,660 ist) of dropping it. (Round Determine whether Foress Village should discontinue the office furniture line and th should drop answer to 0 decimal places, e.g. 5,275.) should not drop Net income without Office Furniture is $ The company V the Home Office Furnitur