Green Lawn Industries has three product lines of sprinklers that it manufactures: Oscillating, Rotary, and Traveling. The following is an income statement for each of the three product lines for the year ended December 31, 2019:

	Oscillating	Rotary	Traveling	Total
Sales	$375,000	$232,500	$300,000	$907,500
Cost of Goods Sold	(123,000)	(182,500)	(127,500)	(433,000)
Sales Commission	(33,000)	(32,500)	(30,000)	(95,500)
Contribution Margin	219,000	17,500	142,500	379,000
Advertising expense (specific to each individual segment)	(27,000)	(7,500)	0	(34,500)
General Fixed Operations Expense	(30,000)	(30,000)	(30,000)	(90,000)
Net income (loss)	$162,000	$(20,000)	$112,500	$254,500

Required:

1. What is the effect on Green Lawn Industries profitability if they eliminate the Rotary product line? Should Green Lawn Industries eliminate the Rotary product line?

2. Confirm your decision by preparing an income statement, assuming that the Rotary product line is eliminated.