SipacoreVillage sells home, and office furniture. Currently the home product line takes up approximately 50 percent of the company's retail floor space. The president ofSipacoreVillage is trying to decide whether the company should continue offering office furniture or concentrate on home furniture. Below is a product line income statement for the company. If office furniture is dropped, salaries and other direct fixed costs can be avoided. In addition, sales of home furniture can increase by15percent without affecting direct fixed costs. Allocated fixed costs are assigned based on relative sales.

Home

Furniture

Office

Furniture

Total

Sales$1,430,000$1,101,100$2,531,100Less cost of goods sold929,500800,8001,730,300Contribution margin500,500300,300800,800Less direct fixed costs:Salaries180,180180,180360,360Other60,06060,060120,120Less allocated fixed costs:Rent14,19011,60325,793Insurance3,2202,8166,036Cleaning3,5902,9656,555President's salary71,12058,418129,538Other6,3004,96111,261Net income / (loss)$161,840$(20,703)$141,137

Determine whetherSipacoreVillage should discontinue the office furniture line and the financial benefit (cost) of dropping it.(Round answer to 0 decimal places, e.g. 5,275.)

Net income without Office Furniture is $

enter net income without office furniture in dollars

. The company

select an option

should drop

should not drop

the Home Office Furniture product line.