Ninja Turtle Industries manufactures light fixtures for home, retail, 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:

Sales Variable costs Contribution margin Fixed costs Home $550,000 357,500 192,500 125,000 Operating income $67,500 Retail $320,000 217,600 102,400 130,000 $(27,600) Industrial $830,000 680,600 149,400 1 15,000 $34,400 Total $ 1,700,000 1,255,700 444,300 370,000 $74,300