KKL makes an innovative calculators specifically for financial engineering. It has two versions of Calc K and K plus operating income for each calculator for the year is as follows. For calculator kRevenues$(1000*$$$900)-$ $$900,000$Operating costsAdmin salaries $-240,000$Programming wages$-260,000$Supplies$-100,000$Depreciation of equipment$-50,000$Marketing$-60,000$Allocated corporate overhead$-90,000$Total operating costs$-800,000$Operating income$($loss$)-100,000$For calculator K$+$Revenues$(800*$$$1650)-$ $$1,320,000$Operating costsAdmin salaries $-200,000$Programming wages$-760,000$Supplies$-200,000$Depreciation of equipment$-120,000$Marketing$-48,000$Allocated corporate overhead$-132,000$Total operating costs$-1,460,000$Operating income$($loss$)-(140,000)$Programming$,$ wages, supplies and marketing are variable cost with respect to number of calculators administrative salaries are fixed cost with respect to number of calculators KKL is considered dropping the K$+$ and offering just K Required:$1.$ If Klaus is strong, one administrative position could be eliminated saving the company $$100,000$ assuming no change in the sales of K what effect would dropping K plus have on company separating income?$2.$ Referring back to the original data that is the data in the question if KKL drops the K plus Morrison estimates that the sales of K would increase by $50\%$ they believe that they could still eliminate the $$100,000$ administrative position. Should Morrison drop K plus show all supporting calculations and explain if they should drop K$+$ or not, and why.

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