How do i find "Contribution margin lost if fruity rings is discontinued"?

Suppose Quacker is considering discontinuing its fruity rings product line. Assume that during the past year, the fruity rings product line income statement showed the following Click the icon to view the income statement data.) (Click the icon for additional information) if the company decides to discontinue the product line, what will happen to the company's operating income? Should Quacker discontinue the fruity is product line? Begin by preparing a contribution margin income statement for the fruity rings product line. (Use a minus sign or parentheses to enter a foto) Sales revenue $ 7,400,000 Less: Variable expenses 4,905,000 Contribution margin $ 2.495,000 Loss Fixed expenses 2.995,000 $ Operating income (105) (500.000 Prepare an incremental analysis to show how the discontinued fruity rings product line will affect Quacker's operating Income (Enter a "o" in an input fald it there is no expected change as a result of discontinuing fruity rings) Incremental Analysis for Discontinuation Decision Contribution margin lost it fruity rings is discontinued Loss: Fixed cost savings if fruity rings is discontinued Operating Income if fruity rings is discontinued Total 755,000 lost estion 4, E8-26A (sir Part 2 of 3 Data Table gits fruity rings product B ent data.) (Click 1 Sales revenue $ "uct line, what will happ 7,400,000 2 Less: Cost of goods sold 6,250,000 3 Gross profit 4 Less: Operating expenses 1,150,000 statement for the fry 1,650,000 -7,400,000 5 Operating income (loss) $ (500,000) More Info Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are fixed. Since the fruity rings line is just one of the company's cereal operations, only $755,000 of direct fixed costs (the majority of which is advertising) will be eliminated if the product line is discontinued. The remainder of the fixed costs will still be incurred by the company. Print Done