Sophisticates' Corner sells clothing. shoes. and accessories at a suburban location near Boston. Information for the just concluded calendar year follows . Clothing Shoes Accessories Sales $850,000 $320,000 $150,000 Less: Variable costs $510,000 $270,000 $ 82,500 Fixed costs 290,000 70,000 42,000 Total costs 800 000 $340,000 $124,500 Operating income (loss) new m Management is considering closing the shoe operation because of the loss and expanding the space that is currently devoted to accessories sales. A salaried salesperson in the shoe department who earns $45,000 wilI be terminated; however, all other departments] xed costs will continue to be incurred. Sophisticates' Comer Will Spend $16,000 on remodeling costs and anticipates that accessories sales will increase by $70,000. This additional sales revenue is expected to generate a 35% contribution margin for the rm. Finally. because clothing customers often purchased shoes and feel strongly about 'one-stop shopping." clothing sales are expected to fall by 10% if the shoe department is closed. Recalculate the total Sophisticates' Corner income statement assuming Shoes are eliminated. Should Shoes be discontinued