less cost of goods sold $1,450,000 942.500 507,500 $1,116.500 12.000 52,566.00 1.754.900 Les directed costs: 182,700 182,700 55,025 365.400 less alocated foxed costs: Insurance 10, 412 2,391 2.875 60,003 23.442 5,581 13030 3.190 3,580 65,940 5,220 $177,015 President's salary 126,023 14,820) Determine whether to should come the future in the face cost of CALCULATOR PRINTER VERSION BACK Exercise 7-13 Clinton sells computer equipment and home office furniture. Currently the furniture product line takes up approximately 50 percent of the company's retal floor space. The president of Clinton is trying to decide whether the company should continue offering furniture or concentrate on computer equipment Below is a product line income statement for the company. If furniture is dropped, salaries and other direct foxed costs can be avoided. In addition, sales of computer equipment can increase by 13 percent without affecting direct foxed costs. Allocated fixed costs are assigned based on relative sales. Computer Home Office Equipment Furniture $1,450,000 $1,116,500 942,500 812,000 507,500 304,500 Total $2,566,500 1,754,500 812,000 182,700 55,825 Sales Less cost of goods sold Contribution margin Less direct forced costs: Salaries Other Less allocated foxed costs: Rent Insurance Cleaning President's salary Other Net income / (loss) 182,700 55,825 365,400 111,650 13,030 3,190 3,580 65,940 6,220 $177,015 10,412 2,391 2,875 60,083 5,034 $(14,820) 23,442 5,581 6,455 126,023 11,254 $162,195 Determine whether Clinton should discontinue the furniture Ine and the financial benefit (cost) of dropping it. Net income without Home Office Furniture is $ Home Office Furniture product ine. Click if you would like to Show Work for this questioni The company the nen how