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Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow: Total Cups Pitchers Sales Revenue 460000 310000

Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow:

Total Cups Pitchers
Sales Revenue 460000 310000 150000
Variable Expenses 355000 235000 120000
Contribution Margin 105000 75000 30000
Fixed Expenses 76000 38000 38000
Operating Income (loss) 29000 37000

(8000)

If $22364 in fixed costs will be eliminated by dropping the Pitcher line, how will operating income be affected? If income drops, use a negative sign in front of the number.

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