Please Show Work, Will Upvote. Thanks. Suppose Grainy Day is considering discontinuing its mallow charms product line. Assume that during the past year, the mallow charms' product line income statement showed the following:

$($Click the icon to view the income statement data.$)$

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If the company decides to discontinue the product line, what will happen to the company's operating income? Should Grainy Day discontinue the mallow charms product line?

Begin by preparing a contribution margin income statement for the mallow charms' product line. $($Use a minus sign or parentheses to enter a loss.$)$

Data table

More info

Fixed manufacturing overhead costs account for $40\%$ of the cost of goods, while

only $30\%$ of the operating expenses are fixed. Since the mallow charms line is just

one of the company's cereal operations, only $$780,000$ of direct fixed costs $($the

majority of which is advertising$)$ will be eliminated if the product line is

discontinued. The remainder of the fixed costs will still be incurred by the company.