The management of Clock Works Corporation is considering dropping its Hand Watch product line. Data from the company's accounting system appear below: Sales KD 905,000 Variable expenses KD 420,000 Fixed manufacturing expenses KD 398,000 Fixed selling and administrative expenses KD 274,000 In the company's accounting system, all fixed expenses of the company are fully allocated to products. Further investigation has revealed that KD 316,000 of the fixed manufacturing expenses and KD 193,000 of the fixed selling and administrative expenses are avoidable if the Hand Watch product line is discontinued. Contribution Margin Lost = KD Fixed Cost Avoided = KD Financial Advantage or Disadvantage of Dropping the Hand Watch product line = KD If Clock Works total Net Operating Income from all its products before dropping Hand Watch product line was KD 540,000, then after dropping the Hand Watch product line its total Net Operating Income would be = KD