Walla-Walla-Water produces and bottles various types of waters which are each treated as a separate division. The three divisions are Spring Water, Fizzy Water, and Flavored Water. The F line has been showing losses for several years, and management is considering dropping the line. Recent income statements have been very similar to the following information which was prepared for the most recent year: Spring Fizzy Flavored Total Water Water Water Sales $612,000 $660,000 $842,000 $2,114,000 Variable costs 219,000 457,000 480,000 1,156,000 Contribution 393,000 203,000 362,000 958,000 margin Fixed costs 150,000 240,000 225,000 615,000 Operating $243,000 $(37,000) $137,000 $343,000 income Of the fixed costs, $360,000 are common costs that have been allocated equally to each product line. 1. What will total operating income be if Walla Walla drops the Flavored Water line? 2. Should Walla-Walla keep or eliminate the Flavored Water line? (yes or no)