Steering Village sells home, and office furniture Currently the home product line takes up approximately 50 percent of the company's retail floor space. The president of Steering Village 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 by 15 percent without affecting direct fixed costs. Allocated fixed costs are assigned based on relative sales. Home Office Furniture Furniture Total Sales $1.425,000 $1,097,250 $2.522.250 Less cost of goods sold 926,250 798,000 1.724,250 Contribution margin 498,750 299.250 799,000 less direct fixed costs Salaries 174.563 174 563 349.126 Other 59.850 59.850 119.700 Less allocated hired costs Rent 12.880 10,744 23 624 Insurance 3.490 2.899 6,389 Cleaning 4.240 3.378 7.618 President's salary 80.030 57 597 137.627 Other 6000 5.039 11.439 Net income $157.297 $14,820 5142477 Determine whether Steering Visseshould discontinue the othefurniture line and the financial benefits of dropping Notincate without Office Furniture 155 the Home Ofice Furnit