Exercise 7-13 Marx 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 Marx 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 Total Equipment Furniture Sales $1,430,000 $1,101,100 $2,531,100 Less cost of goods sold $929,500 $800,800 $1,730,300 Contribution margin $500,500 $300,300 $800,800 Less direct fixed costs: Salaries $180, 180 $190,000 $370,180 Other $60,060 $60,060 $120,120 Less allocated fixed costs: Rent $15,420 $10,280 $25,700 Insurance $3,660 $2,440 $6,100 Cleaning $4,320 $2,880 $7,200 President's salary $78,000 $52,000 $130,000 Other $6,720 $4.480 $11,200 Net income $152,140 ($21.840) $130,300 In order to determine whether Marx should discontinue the furniture line and the financial benefit (cost) of dropping it, calculate the net income without Home Office Furniture. Enter your answers $500,500 $300,300 $800,800 Contribution margin Less direct fixed costs: Salaries Other Less allocated fixed costs: $180,180 $190,000 $60,060 $60,060 $370,180 $120,120 Rent Insurance Cleaning President's salary Other Net income $15,420 $10,280 $3,660 $2,440 $4,320 $2,880 $78,000 $52,000 $6,720 $4,480 $152,140 ($21,840) $25,700 $6,100 $7.200 $130,000 $11,200 $130,300 In order to determine whether Marx should discontinue the furniture line and the financial benefit (cost) of dropping it, calculate the net income without Home Office Furniture. Enter your answers as amounts only with neither commas nor decimals