Suppose Eagle Products is considering discontinuing its soy cereal product line. Assume that during the past year, the soy cereal product line income statement showed the following Click the icon to view the income statement data) Click the icon for additional information) of the company decides to discontinue the product line, what will happen to the company's operating income? Should Eagle Products discontinue the soy cereal product line? Begin by preparing a contribution margin income statement for the soy cereal product line. (Use a minus sign or parentheses to enter a loss.) Sales Tevenue COS Contribution margin Less Operating income (los) Prepare an incremental analysis to show how the discontinued soy cereal product line wit affect Eagle Product's operating income (Enter a cor in an nout blod if there is no expected change as a result of discontinuing soy cereal Incremental Analysis for Discontinuation Decision Total Contbution margin lout if soy cereal in dincontinued Los Fixed cost saving it to cereal is discontinued Opening income soy cereals diocontinued It Eagle Products discontinued the soy cereal product in, it will Income. Therefore, Eagle Products discontinue this product line Suppose Eagle Products is considering discontinuing its soy cercal product line. Assume that during the past year, the soy cereal product line Income statement showed the following Click the icon to view the income statement data) Click the Icon for additional information) it the company decides to discontinue the product line, what will happen to the company's operating income? Should Eagle Products discontinue the soy cereal product line? Data Table More Info B $ 1 Sales revenue 2. Less Cost of goods sold 3 Gross profit 4 Less: Operating expenses Operating Income (138) 5.250,000 6.250,000 (1.000.000) 1.550.000 Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are fixed. Since the soy cercal line is only one of the company's breakfast cereals, only $725,000 of direct fixed costs (the majority of which is advertising) wil be eliminated the product line is discontinued. The remainder of the fixed costs will be incurred by tho company, $ 2.550.000) Print Done Print Done Therefore, Eagle Products discontinue this product line