Stretch Inc. sells both yoga pants and yoga mats.Managers for Stretch are concerned about their operating losses.They are considering dropping their yoga mat product line. Operating income by product line is shown below. Make a new operating income analysis assuming Stretch will only sell yoga pants. Then explain why Stretch should drop the yoga mat product line.

Stretch Inc.Income Statement For year ended December 31, 2017 Total Yoga Pants Yoga Mats Sales Revenue$425,000$299,000$126,000 Variable Costs221,000136,00085,000 Contribution Margin204,000163,00041,000 Fixed Costs:Fixed Manufacturing123,00062,00061,000 Selling & Administrative58,00046,00012,000 Operating Income23,00055,000(32,000)