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

	Total	Cups	Pitchers
Sales revenue	$460,000	$310,000	$150,000
Variable expenses	355,000	235,000	120,000
Contribution margin	105,000	75,000	30,000
Fixed expenses	76,000	38,000	38,000
Operating income (loss)	$29,000	$37,000	$(8,000)

If $26182 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.

Clear Sky Sailmakers manufactures sails for sailboats. The company has the capacity to produce 15,000 sails per year, but is currently producing and selling 10,000 sails per year. The following information relates to current production:

Sale price per unit	$250
Variable costs per unit:
Manufacturing	$139
Marketing and administrative	$55
Fixed Cost per Unit
Manufacturing	$75
Marketing and administrative	$20

If a special sales order is accepted for 4973 sails at a price of $234 per unit, and fixed costs remain unchanged, how would operating income be affected? (assume regular sales are not affected by the special order) If accepting the special order would reduce income, use a negative number for your answer.