Suppose McMaster is considering dropping its sweet potato fries product line. Assume that during the past...

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Suppose McMaster is considering dropping its sweet potato fries product line. Assume that during the past year, the sweet potato fries product line income stateme showed the following (Click the icon to view the income statement data.) Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are fixed. Since the sweet potato fries line is only one of McMaster's french fries, only $740,000 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 McMaster. If the company decides to drop the product line, what will happen to the company's operating incomem Should McMaster drop the product line? Prepare any snow now dropping a swe posso iners product was operating income, use parenumeses or a minus sign for a decrease in operating income.) McMaster Analysis of Dropping the Sweet Potato Fries Product Line Expected decrease in revenues Expected decrease in expenses Variable expenses Fixed expenses Expected decrease in total expenses Expected increase (decrease) in operating income

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