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IvanhoeIndustries manufactures light fixtures for home, retail, and industrial customers. The retail line has been showing losses for several years, and management is considering dropping

IvanhoeIndustries manufactures light fixtures for home, retail, and industrial customers. The retail line has been showing losses for several years, and management is considering dropping the line. Recent income statements have been very similar to the following information which was prepared for the most recent year:

Home

Retail

Industrial

Total

Sales

$550400

$320400

$830400

$1701200

Variable costs

358100

218200

681300

1257600

Contribution margin

192300

102200

149100

443600

Fixed costs

125400

130400

115400

371200

Operating income

$66900

$(28200)

$33700

$72400

Of the fixed costs, $316200 of it is common costs that have been allocated equally to each product line. What will total operating income be if Ivanhoe drops the retail line?

$25200

$(4800)

$77200

$100600

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