Suppose Better Harvest is considering discontinuing its oatsie ohs product line. Assume that during the past year, the oatsie ons' product line income statement showed the following: Click the icon to viow the income statement data) (C) (Click the icon for additonal information) If the company decides to discontinue the product line, what wil happen to the company's operating income? 5 heuld Bettar Harvest discontinue the oatsie ohs product line? Data table Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are fixed. Since the oatsie ohs line is just one of the company's cereal operations, only $725,000 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 Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss)