Supposo K-Log is considering discontinuing its special oats product line. Assume that during the past year, the special oats' 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 K-Log discontinue the special oats product line? Begin by preparing a contribution margin income statement for the special oats' product line. (Use a minus sign or parentheses to enter a loss.) Sales revenue Less * Data Table Contribution margin Less: Sales revenue $ Operating income (loss) 5,250,000 6,150,000 More Info Less: Cost of goods sold Gross profit Less: Operating expenses Operating income (loss) (900,000) 1,500,000 (2,400,000) $ Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are fixed. Since the special oats line is just one of the company's coreal operations, only $770,000 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 the company Print Done Print Done