Silus Limited manufactures and sells a number of different products, including re-usable grocery bags. The company has been experiencing losses on this particular line for some time, as seen on the Income Statements below: Silus Limited Income Statement - Re-usable grocery bags For the Quarter ended June 30 Sales Variable Expenses: Variable Manufacturing Expenses Sales Commissions Shipping Contribution Margin Fixed Expenses: $ 275,000 $ 77,000 30,250 8,250 115,500 159,500 Salary of Product Line Manager 10,500 General Factory Overhead 54,700 Depreciation of Equipment. 20,500 Advertising - Re-usable grocery bags 52,900 Insurance on Inventories 4,500 Purchasing Department 32,200 Operating Loss 175,300 (15,800) Discontinuing this line of products would not affect sales of other product lines and would have no impact on the company's total general factory overhead or total purchasing department expenses. The general factory overhead is allocated based on machine hours and the purchasing department cost is allocated based on sales dollars. As well, the equipment that is used to make this product cannot be used for anything else and there is no resale value. Required: Would you recommend that the Re-usable Grocery Bag product line be discontinued? (1 mark) Show all your calculations (5 marks) and explain why? (2 marks)