The income statement information for Larkspur follows: Premium Regular Royal Total Sales units 105 kg 105 kg 105 kg 315 kg Sales $ 2,310 $ 1,680 $ 1,890 $ 5,880 Variable costs 1,470 1,050 1,134 3,654 Contribution margin 840 630 756 2,226 Production line fixed costs* 672 761 546 1,979 Corporate costs (allocated)** 95 84 110 289 Total fixed costs 767 845 656 2,268 Operating income (loss) +A || $ 73 +A || $ (215) $ 100 $ (42) If the company drops the product, these costs are no longer incurred. ** None of these corporate costs are expected to change if a product line is dropped.