K Vid Suppose Smithers Company is considering discontinuing its organic dried fruit product line. Assume that during the past year, the organic dried fruit's 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 Smithers Company discontinue the organic dried that produ Begin by preparing a contribution margin income statement for the org Sales revenue Less: Variable expenses Contribution margin Less Fixed expenses Operating income (loss) Data table $ 5,200,000 4350000 850000 3,050,000 2200000 1 Sales revenue 2 Less: Cost of goods sold 3 Gross profit 4 Less: Operating expenses 5 Operating income (loss) $ 5.200.000) 6.500.000 (1,300,000) 1,500,000 $ (2.800.000) Print Done More info Faxed manufacturing overhead costs account for 40% of the cost of goods, while t only 30% of the operating expenses are fixed. Since the organic dried fruit line is just one of the company's fruit operations, only $750,000 of direct fixed costs (the majority of which is adversaing) wit be eliminated if the product line is discontinued. The remainder of the fixed costs wil stl be incurred by the company Print Done x Clear all Final check