Should the ladies' accessories product line be dropped? Yes O No Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line $2,900,000 1, 363, 000 1,537,000 Sales Less: Variable expenses Contribution margin Less: Fixed expenses: Wages Insurance on inventory Advertising Net operating income (1oss) $1,044, 000 58,000 638,000 1, 740,000 $ (203, 000) 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 $87,000. Required: Calculate the increase or decrease in the operating income in both alternatives. Keep Accesories Product Line Drop Accesories Product Line Sales Fixed expenses Net operating income (loss)