The ABC department store has three major product lines: hardware, clothing, and sporting goods.The store is considering dropping the clothing line because the income statement shows that it is operating at a loss. Note the income statement for these product lines below:

Hardware Clothing Sporting Total Goods $10,000 $15,000 $25,000 $50,000 Less: Variable costs $6,000 Contribution $7,000 $13 ,000 $24,000 Margin ----- m m m w