Suppose Grainy Day in considering doontinuing its tasty loop product ine. Assume that during the past year, the tasty boopa' product line income statement showed the follo Click the icon to view the income statement data) Click the icon for additional information) w the company decides to discontinue the product line, what will happen to the company's operating income? Should Grainy Day discontinue the tasty loops product line? Begin by preparing a contribution margin income statement for the lasty i Data Table 7,400,000 Sales revenue Loss Variable expenses Contribution margin Loss: Foed expenses $ 7.400,000 6,350,000 Operating income (los) 1 Sales revenue 2 Loss Cost of goods sold 3 Gross profit 4 Loss: Operating expenses 5 Operating Income (loss) 1.050,000 1,300,000 (250,000) 5 Print Done Choose from any list or enter any number in the input fields and then click Check Answer Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are fixed. Since the tasty loops line is just one of the company's cereal operations, only $755,000 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