The following operating income data about the performance of the two product lines:

The product line is losing money so with a commission study it will determine whether the

company should discontinue the product line. Company accountants estimate that

discontinuing, will decrease fixed cost of goods sold by $$81,000$ and decrease fixed

marketing and administrative expenses by $$14,000.$ Production engineers believe that by

cutting down on project expenses the company could save another $$100,000$ of fixed cost

of goods sold from the product line $($GREEN$).$

Using an incremental analysis approach $($only relevant information$)$ clearly

calculate whether HVFP should discontinue the product line. Your analysis

should first show the results without the GREEN savings and then show the

results with the GREEN savings.

Prepare contribution margin income statements to show HVFP$\text{'}$s total

operating income under the three alternatives $($a$)$ with the industrial systems

product line, $($b$)$ without the industrial systems product line, and $($c$)$ without

the industrial systems product line and including the GREEN savings.