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M7-7 (Algo) Analyzing Keep-or-Drop Decision [LO 7-2, 7-5] Blowing Sand Compony produces the Drafty model fan. which currently has a net loss of 360,000 as
M7-7 (Algo) Analyzing Keep-or-Drop Decision [LO 7-2, 7-5] Blowing Sand Compony produces the Drafty model fan. which currently has a net loss of 360,000 as folown: Eliminating the Drafty product line would eliminate $88,000 of direct fieed costs. The $74.000 of common fixed costs would be redistributed to Blowing Sand's remaining product lines Required: Wil Blowing Sand's net operating income increase or decrease if the Drafty model is elminated? By how much
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