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Foress Village sells home, and office furniture. Currently the home product line takes up approximately 50 percent of the company's retail floor space. The president of Foress Village is trying to decide whether the company should continue offering office furniture or concentrate on home furniture. Below is a product line income statement for the company. If office furniture is dropped, salaries and other direct fixed costs can be avoided. In addition, sales of home furniture can increase by 15 percent without affecting direct fixed costs. Allocated fixed costs are assigned based on relative sales. Home Office Furniture Furniture Total Sales $1,440,000 $1,108,800 $2,548,800 Less cost of goods sold 936,000 806,400 1,742,400 Contribution margin 504,000 302,400 806,400 Less direct fixed costs: Salaries 176,400 176.400 352,800 Other 55,440 55,440 110,880 Less allocated fixed costs: Rent 12,740 9,838 22,578 Insurance 3,540 2,510 6,050 Cleaning 3,830 3,204 7,034 President's salary 73,580 58,662 132,242 Other 6,810 5,562 12,372 Net income / (loss) $171,660 $(9,216) $162,444 Determine whether Foress Village should discontinue the office furniture line and the financial benefit (cost) of dropping it. (Round answer to O decimal places, e.g. 5,275.) Net income without Office Furniture is $ The company the Home Office Furnitu should drop should not drop Save for Later Attempts: 0 of 1 used Submit