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Dexter Products, Inc., manufactures and sells a number of items, including an overnight case. The company contribution format income statement has been experiencing losses on

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Dexter Products, Inc., manufactures and sells a number of items, including an overnight case. The company contribution format income statement has been experiencing losses on the overnight case for some time, as shown on the following Dexter Products, Inc Income Statement-Overnight Cases For the Quarter Ended June 30 Sales Variable expenses $410,000 Variable manufacturing expenses Sales commissions Shipping $128,000 44,000 12,000 Total variable expenses 184,000 226,000 Contribution margin Fixed expenses Salary of product-line manager General factory overhead Depreciation of equipment (no resale value) Advertising-traceable Insurance on inventories Purchasing department 23,000 120,000* 35,000 121,000 9,000 47,000t Total fixed expenses 355,000 Net operating loss $(129000) Allocated on the basis of machine-hours tAllocated on the basis of sales dollars Discontinuing the overnight cases would not affect the company's sales of its other product lines, its total general factory overhead, or its total purchasing department expenses Required a. Compute the increase or decrease of net operating income if the overnight case are continued or discontinued. (Leave no cells blank - be certain to enter "O" wherever required. Input all amounts as positive except Decreases in Sales, Decreases in Contribution Margin, and Net Losses which should be indicated by a minus sign. Omit the "$" sign in your response.) Keep Overnight Cases Drop Overnight Cases Net Operating Income Sales Variable expenses Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses Salary of line manager General factory overhead Depreciation of equipment

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