Suppose Smithers Company is considering discontinuing its crganic dried frut product line. Assume that during the past year, the omanic dried fruits product Ine income statement showed the following Cick the icon to vow the Incoma staiement dara.) manufacturing ovetead costs account tr40% ofthe cost of goods e on y 30% oro e operating expenses are ed Since the organic dried 1 uit line is ust one or e company's 1 it operations, only S750.000 orc ect ed costs the ma orty Or which is adver sing will be eliminated the product line is discontinued. The remainder of the fixed costs wil still be incurred by the company. If the company decides to discontinue the product line, what wil happen to the company's operating income? Should Smithers Company ciscontinue the organic dried fruit product line? Begin by preparing contrit ution margin nome statement forthe organic dnco turs pro uct Inc Sales revenue Less: Cost ofgoods sold Contrbuthon mangin Less lsc a minus sign or parcnthCSCS toenter a loss S 5,200,000 13coou0) Data Table income lass) Sales revenue Less: Cost of goods sold Gross pront Less Operatng expenses Operating income (ss) 5,200,000 6,500,000 (1.30u,000) 1,500,000 $ 2,800,000)