hapter 9 Saved Help Save & Exit Submit Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line: $2,925,000 1,374,750 1,550,250 Sales Less: Variable expenses Contribution margin Less: Fixed expenses: Wages Insurance on inventory Advertising Net operating income (loss) $1,053,000 58,500 643,500 1,755,000 $ (204,750) Management is concerned about the loss and is considering dropping the product line. If the product line is dropped, a job has to be created elsewhere for a long-term employee currently earning an annual salary of $87,750. ab 4: Chapter 9 i Saved Help Save & Exit S Required: Calculate the increase or decrease in the operating income in both alternatives. 1 Keep Accesories Product Line Drop Accesories Product Line Sales 00:58:25 Fixed expenses eBook Net operating income (loss) 07 Should the ladies' accessories product line be dropped? O Yes O No