i Data Table he y rings product lin -) (Click the A B e, what will happer fri 1 Sales revenue $ 5,350,000 2 Less: Cost of goods sold 6,000,000 ement for the fruity 0,000 3 Gross profit 4 Less: Operating expenses (650,000) 1,400,000 $ (2,050,000) 5 Operating income (loss) Print Done i 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 $725,000 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 Clear All Final 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 incomo? Should Quacker discontinue the fruity rings 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 loss.) Sales revenue $ 5,350,000 Less: Variable expenses Contribution margin Less: Fred expenses Operating income (loss)