Suppose Grainy Day is considering discontinuing its tasty loops product line. Assume that during the past year, the tasty loops' product line income statement showed the following: $($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 Grainy Day discontinue the tasty loops product line?

Begin by preparing a contribution margin income statement for the tasty loops' product line. $($Use a minus sign or parentheses to enter a loss.$)$

Sales revenue

Less:

Contribution margin

Less:

Operating income $($loss$)$