Suppose Better Harvest is considering discontinuing its mallow charms product line. Assume that during the past year, the mallow charms' product line income statement showed the following: E (Click the icon to view the income statement data.) (Click the icon for additional information If the company decides to discontinue the product line, what will happen to the company's operating income? Should Better Harvest discontinue the mallow charms product line? * More Info - X e. (Use a minus sign or Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are fixed. Since the mallow charms line is just one of the company's cereal operations, only $730,000 of direct fixed costs (the majority of which is advertising) will be eliminated if the product line is discontinued. The remainder of the fixed costs will still be incurred by the company. Sales revenue $ 7,550,000 6,300,000 Less: Cost of goods sold Gross profit 1,250,000 1,500,000 Less: Operating expenses Operating income (loss) (250,000)