Question Two: Amman Furniture Manufacturing Company produces and sells two types of furniture, home furniture and office furniture. The income statement for 2021 is presented below by JODs: Company Sales Variable costs Contribution margin Home furniture 1,000,000 (600,000) 400,000 Office furniture 700.000 (420,000) 280,000 1,700,000 (1,020,000) 680,000 Direct fixed costs: Salaries for production managers (200,000) (200,000) (400,000) Common fixed costs: Insurance Cleaning Company's President salary (14,706) (3,529) (76,470) (10,294) (2,471) (53,530) (25,000) (6,000 (130,000) Net income JOD 105,295 JOD 13,705 JOD 119,000 The office furniture product line takes up approximately 50% of the company's retail floor space. The president of the company is trying to decide whether the company should stop producing office furniture and just concentrate on home furniture. The Cost Accounting Manager provided the President with the following information to help him make the decision: . . If the company stopped producing office furniture, direct fixed costs will be avoidable costs. If the company stop producing office furniture, sales and cost of sales of home furniture will increase by 20% without no effect on fixed costs. Common fixed costs are allocated based upon number of employees and this allocation is considered arbitrary and inaccurate to split the common costs between the two production lines. Requirement: The President of the company could not make a decision based upon the information provided by the Cost Accounting Manager, so he asked you (as a senior manager) to analyze the situation and recommend whether the Company should stop producing office furniture and also determine the financial benefits of stopping the office furniture production line