Williams Products Inc manufactures and sells a number of items, including school knapsacks. The company has been experiencing Josses on the knapsacks for some time, as shown by the contribution format income statement below: MELETAS PRODUCTS INC Income Statement-School Kapsacks For the Quarter Ended June 10 Sales $250,000 Variable expenses Variable manufacturing expenses $70,000 Sales comissions 27.500 Shipping 7.50 Total variable expenses 105,000 145.000 Contribution margin Fixed expenses Salary of product-line manager General factory overhead Depreciation of equipment (no resale value) Advertising-traceable Insurance on inventories Purchasing department 9,25e 49.450 17.500 51,150 23.100 161.150 Total fixed expenses 5(16,150) Operating loss has HOLA CHOS 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 company's total general factory overhead or total purchasing department expenses. Required: a. Compute the increase or decrease of net operating income it the Whams Products Inc ine is continued or discontinued (Input all amounts os positive except Decreases in Sales, Decreases in Contribution Margin, and Net Losses which should be indicated by minus sign) Keep School Drop School Knapsack Knapsack Difference Operating Income Micro (Decrease Sales Variable expenses Vrable manufacturing penses Sales commissions Shipping Total variable pe Contribution martin lems 75 marks Saved Keep School Drop School Knapsack Knapsack Difference: Operating Income Increase or (Decrease) Sales Variable expenses Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses Salary of product-line manager General factory overhead Depreciation of equipment Advertising-traceable Insurance on inventories Purchasing department Total fixed expenses Operating loss