l Products Inc. manufactures and sells a number of items, including school knapsacks. The company es on the knapsacks for some time, as shown by the contribution format income statement below WILLIAMS PRODUCTS INCE Inco Statement-School Kapaces For the Quarter Endede Sales Variable expenses: Variable manufacturing expenses Sales commissions Shipping 572,Bee 28.600 7.860 Total variable expenses 109,280 150.800 9,75e $1,550 Contribution margin Fixed expenses: Salary of product line manager General factory overhead Depreciation of equipment (no resale value) Advertising traceable Insurance on inventories Purchasing department 19,000 51,850 4,200 30,7601 Total fixed expenses 167, 110 Operating loss (16,910 "Allocated on the basis of machine-hours DELL Allocated on the basis of machine hours. TAllocated on the basis of sales dollars. Discontinuing the knapsacks would not affect sales of other product lines and would have no noticeable elect one total general factory overhead or total purchasing department expenses. Required: a. Compute the increase or decrease of net operating income if the Williams Products Incline is continued or discontinued amounts as positive except Decreases in Sales, Decreases in Contribution Margin, and Net Losses which should be indicated by minus sign.) Keep School Drop School Knapsack Knapsack Difference Operating Income Increase or (Decrease Sales Variable expenses Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fored expenses Sala man by 1 of 3 Next > DOLL eBook Sales commissions Shipping Total variable expenses Contribution margin Fored expenses: Salary of product line manager General factory overhead Depreciation of equipment Advertising-traceable Insurance on inventories Purchasing department Total fixed expenses Operating loss 0 $ b. Would you recommend that the Williams Products incline be discontinued? Yes No 1 of 3 !!! Next >