Question $14$

The income statement for Bauer Online Real Estate Training is presented below. The management team at the real estate training company is not pleased with the performance of their residential real estate training line and is considering dropping it$.$ A cost study of the residential training line has revealed that $$36,207$ of the Selling and $$33,857$ of the Administrative fixed expenses cannot be avoided if the residential real estate training line is dropped. If the management at Bauer Online Real Estate Training decides to drop the line, what will the new company net income be$?$ Calculate your answer to the nearest whole dollar.

Total Residential Commercial

Sales Revenue $$527000$ $$185000$ $$342000$

Variable Costs $1120003400078000$

Contribution Margin $415000151000264000$

Fixed Costs:

Selling $1850008800097000$

Administrative $20300094000109000$

Total Fixed Expenses $388000182000206000$

Operating Income $($Loss$)$ $$27000$ $$(31000)$ $$58000$