LO4 (Relevant Costs) Dexter Products, Inc., manufactures and sells a number of items, including an overnight case. The company has been experiencing losses on the overnight case for some time, as shown on the following contribution format income statement: Dexter Products, Inc. Income Statement Overnight Cases For the Quarter Ended June 30 Sales S450,000 Variable expenses: Variable manufacturing expenses $130,000 Sales commissions 48,000 Shipping ... 12,000 Total variable expenses 190,000 Contribution margin 260,000 Fixed expenses: Salary of product-line manager 21,000 General factory overhead.... 104,000 Depreciation of equipment (no resale value) 36,000 Advertising traceable 110,000 Insurance on inventories 9,000 Purchasing department 50,000+ Total fixed expenses. 330,000 Net operating loss S (70,000) *Allocated on the basis of machine-hours. Allocated on the basis of sales dollars. Discontinuing the overnight cases would not affect the company's sales of its other product lines, its total general factory overhead, or its total purchasing department expenses. Required: Would you recommend that the company discontinue the manufacture and sale of overnight cases? Support your answer with appropriate computations