$[$URGENT$]$ Williams Products Inc. manufactures and sells a number of items, including school knapsacks. The company has been experiencing

losses on the knapsacks for some time, as shown by the contribution format income statement below:

$*$Allocated on the basis of machine$-$hours.

${}_{\text{A}\text{l}\text{l}\text{o}\text{c}\text{a}\text{t}\text{e}\text{d}on\text{t}\text{h}\text{e}\text{b}\text{a}\text{s}\text{i}\text{s}}$ of sales dollars.

Discontinuing the knapsacks would not affect sales of other product lines and would have no noticeable effect on the company's total

general factory overhead or total purchasing department expenses.

Requlred:

a$.$ Compute the increase or decrease of net operating income if the Williams Products Inc line is continued or discontinued. $($Input all

amounts os positlve except Decreases In Soles, Decreases In Contrlbution Margln, and Net Losses whlch should be Indlcoted by a

mlnus slgn$.)$

b$)$ Would you recommend that Williams products Inc line be discontinued?

Yes or No$?$