Suppose Tasty Tart 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 Tasty Tart 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 5250000 Less Variable expenses Contribution margin Data table Less Fixed expenses Operating Income (loss) A 1 Sales revenue 2 Less: Cost of goods sold 3 Gross profit 4 Less: Operating expenses 5 Operating income (los) B $ 5,250,000 6300.000 (1050,000) 1.250,000 $ 2300,000) - More info Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are foxed Since the tasty loops line is just one of the company's coreal operations, only $720,000 of direct food costs (the majority of which is advertising) will be eliminated if the product lines discontinued. The remainder of the fixed costs will still be incurred by the company Print Done Print Done