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Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line: $2,850,000 1,339,500 1,510,500 Sales Less: Variable expenses Contribution margin Less: Fixed expenses: Wages Insurance on inventory Advertising Net operating income (loss) $1,026,000 57,000 627,000 3:12 1,710,000 $ (199,500) Management is concerned about the loss and is considering dropping the product line. If the product line is dropped, a job has to be created elsewhere for a long-term employee currently earning an annual salary of $85,500. Requ ed: Calculate the increase or decrease in the operating income in both alternatives. Keep Accesories Product Line Drop Accesories Product Line Sales Fixed expenses Prey 2 of 15 Next > Required: Calculate the increase or decrease in the operating income in both alternatives. Keep Accesories Product Line Drop Accesories Product Line Sales Fixed expenses 50 Net operating income (loss) W Should the ladies' accessories product line be dropped? O Yes O No