Mr. Burns Industries manufactures light fixtures for home, retall, and industrial customers. The retail line has been showing losses for several years, and management is considering dropping the line. Recent income statements have been very similar to the following information which was prepared for the most recent year: Home Retail Industrial Total Sales $550,000 $320,000 $830,000 $1,700,000 Variable costs 357.500 217.600 680.600 1.255.700 Contribution margin 192,500 102.400 149,400 444,300 Fixed costs 125.000 130.000 115.000 370.000 Operating income $67,500 $127.600) $34.400 $74,300 of the fixed costs, $315,000 are common costs that have been allocated equally to each product line. 1. What will total operating income be if Leonora drops the retail line? 2. Should Mr. Burns keep or eliminate the retail line? Why