Luther Company, located in Largeville. Kansas (USN). is a retaler of durable. Ilght-weight luggage products known for their high-quality and innovation, Receh. the fitm conducted a relevant cost analysis of one of its product ines that has only two products, Kryptonite and Meteorite. Sales ieteorite are decreasing. while purchase cosis incieasing. The firm is considering dropping the Meteorite product and only selling Kryptonite. Luther Company allocates fored costs (both corporate and sellingladministrative) to products based on sales revente When the president of the company saw the productine income statements (oresented below), he agreed that the Meteorite product should be dropped. If this is done, sales of Kryptonite are expected to increase by 15%, next year the firm's cost structure will remain the same. Required; 1. Find the expected change in annual operating income by dropping the Meteonite product and selling only the kryptonite product. 2 What strategic factors should be considered