John's Fancy Chocolate Shop has two product lines; milk chocolate bars and chocolate covered almonds. His company is not doing as well as he hoped as shown in the following income statement:

Sales	100,000
Variable Expenses	60,000
Fixed Expenses	50,000
Operating Loss	(10,000)

Sales for chocolate bars and chocolate almonds are $60,000 and $40,000, respectively. Variable expenses for chocolate almonds are $25,000. Since chocolate almonds is a newer product, the company has been advertising more aggressively. Therefore, the traceable fixed costs for this product line are $30,000. Corporate fixed costs total $10,000. Required: What is the impact to operating income if the company were to drop the chocolate almonds product line? Should the company drop the product line? (4 marks)