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:

WILLIAMS PRODUCTS INC.
Income StatementSchool Knapsacks
For the Quarter Ended June 30
Sales				$	200,000
Variable expenses:
Variable manufacturing expenses	$	56,000
Sales commissions		22,000
Shipping		6,000
Total variable expenses					84,000
Contribution margin					116,000
Fixed expenses:
Salary of product-line manager		7,000
General factory overhead		40,000	*
Depreciation of equipment (no resale value)		13,000
Advertisingtraceable		48,000
Insurance on inventories		3,100
Purchasing department		25,480
Total fixed expenses					136,580
Operating loss				$	(20,580	)

*Allocated on the basis of machine-hours. Allocated on the basis of sales dollars. Discontinuing the knapsacks would not affect sales of other product lines and would have no noticeable effect on the companys total general factory overhead or total purchasing department expenses.

Required: Compute the increase or decrease of net operating income if the Williams Products Inc line is continued or amounts as positive except Decreases In Sales, Decreases In Contribution Margin, and Net Losses which : minus slgn.) Difference: Operating Keep School Drop School Income Knapsack Knapsack Increase or (Decrease) Sales So rs Variable expenses: Variable manufacturing expenses Sales commissions Shipping Total variable expenses or Contribution margin o Fixed expenses: Salary of product-line manager of General factory overhead Depreciation of equipment Advertising-traceable Insurance on inventories Purchasing department Total fixed expenses Operating loss