Part 2 (15 minutes) Duty Free shopping produces a catalog that is placed in airline seatbacks during international flights. Passengers typically skim the catalog during flights and can buy selected merchandise from flight attendant. Below is a report for a recent period: Electronics Jewelry Others Total Sales $ 1,330,000 $ 2,660,000 $ 950,000 $ 4,940,000 Variable costs $ 900,000 $ 2,128.000 $ 350,000 $ 3.378,000 Contribution margin $ 430,000 $ 532,000 $ 600,000 $ 1,562,000 Fixed costs $ 500.000 500.000 $ 500,000 $ 1,500,000 Income (loss) $ (70,000) 32,000 $ 100,000 $ 62,000 The fixed costs is the amount paid for printing the catalog. Management is evaluating discontinuing the sale of electronics products. Fixed costs will not change; however, jewelry sales are expected to increase by 15%. Required: Should management discontinue the electronics products? Show your calculation