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: WILLIAHS PRODUCTS INC. Income StatementBabool mpsncka For the Quarter Ended June 30 Sales $200,000 Variable expenses: Variable manufacturing expenses $70,400 Sales commissions 30,300 Shipping 0,400 Total variab1e expenses 11?,600 Contribution margin 162,400 Fixed expenses: Salary of product-line manager 10,?50 General factory overhead 55,750* Depreciation of equipment (no resale value) 21,000 Advertisingtraceable 53,250 Insurance on inventories 4,600 Purchasing department 32,680T Total fixed expenses 173,030 Operating loss 3(15,630) *Allocated on the basis of machine-hours. TAllocated 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 company's total general factory overhead or total purchasing department expenses