Suppose Smiley $O$ is considering discontinuing its tasty loops product line. Assume that during the past year, the tasty loops' product line income statement showed the following:

View the income statement data.

View the additional information.

If the company decides to discontinue the product line, what will happen to the company's operating income? Should Smiley $O$ 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.$)$

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