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if you could please show how you get the anserwers:) Williams Products Inc. manufactures and sells a number of items, including school knapsacks. The company

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Williams Products Inc. manufactures and sells a number of items, including school knapsacks. The company has been experiencing losses on the knapsacks for some time, as shown by the contribution format income statement below. WILLIAMS PRODUCTS INC. Income Statement-School Knapsacks For the Quarter Ended June 30 Sales $260,000 Variable expenses: Variable manufacturing expenses $72,800 Sales commissions 28,600 Shipping 7.800 Total variable expenses 109,200 Contribution margin 150,800 Fixed expenses: Salary of product-line manager 9.750 General factory overhead 51,550 Depreciation of equipment (no resale value) 19,000 Advertising-traceable 51,850 Insurance on inventories 4,200 Purchasing department 30,7601 Total fixed expenses 167,110 Operating loss $(16,310) "Allocated on the basis of machine hours. Allocated on the basis of sales dollars. Discontinuing the knapsacks would not affect sales of other product lines and would have no noticeable effect on the company's total general factory overhead or total purchasing department expenses. Required: a. Compute the increase or decrease of net operating income if the Williams Products Inc line is continued or discontinued. (Input all amounts as positive except Decreases in Sales, Decreases in Contribution Margin, and Net Losses which should be indicated by a minus sign.) Keep School Drop School Knapsack Knapsack Difference: Operating Income Increase or (Decrease) $ 0 0 O 0 0 0 0 0 0 0 Sales Variable expenses Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses Salary of product line manager General factory overhead Depreciation of equipment Advertising --traceable Insurance on inventories Purchasing department Totalfixed expenses Operating loss 0 0 0 0 0 0 S 0 S 0 $ 0

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