Dropping Product Lines Slow Shop, a small convenience store, has food and beverage sales, and also sales of books and newspapers. An income statement for a recent month is shown below: Sales Variable cost Fixed cost Food and Books and Beverage Newspapers $ 140,000 $ 22,000 $ 84,000 17,500 32,000 12.000 Net income $ 24,000 $ (7,500) $ TOTAL 162,000 101,500 44,000 16,500 The fixed cost is monthly rent for the building which is allocated to the two departments based on square feet of floor space. Management is considering dropping the books and newspapers lines to increase profits. If books and newspapers are eliminated, the space could be used to add more food and beverage products. This is expected to increase sales of food and beverage products by $27,000. If Slow Shop drops books and newspapers, it will be $ Enter your answer in this cell mm