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:

Required: a. Compute the increase or decrease of net operating income if the Williams Products Inc line is continued or discontinued. [Input all amounts as positive except Decreases in Sales, Decreases in Contribution Margin, and Net Losses which should be indicated by a minus sign} Variable expenses: Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses: Salary of productline manager General factory overhead Depreciation ofeouipment Adve rtisingtraceable Insurance on inventories Purchasing department Total xed expenses Operating loss b. Would you recommend that the Williams Products Inc line be discontinued? O Yes O NoWilliams Products Inc. manufactures and sells a number ofitems, including school knapsacks. The company has been experiencing losses on the knapsacks for some time, as shown by the contribution format income statement below: HILLIEHS PRODUCTS INC. Income StatementSchool Knapsacks For the Quarter Ended June 30 Sales $230,000 Variable expenses: variable manufacturing expenses $64,400 Sales commissions 25,300 Shipping 6,900 Total variable expenses 96,600 Contribution margin 133,400 Fixed expenses: Salary of productline manager 6,250 General factory overhead 45,250* Depreciation of equipment {no resale value: 15,500 Advertisingtraceable 49,?50 Insurance on inventories 3,600 Purchasing department 2?,660T Total fixed expenses 150,230 Operating loss ${16,830J *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.I overhead or total purchasing department expenses