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: *Allocated on the basis of machine-hours. Allocatedon 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 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.) \begin{tabular}{|c|c|c|c|} \hline & Knapsack & Knapsack & \begin{tabular}{l} Increase or \\ (Decrease) \end{tabular} \\ \hline \multicolumn{4}{|l|}{ Sales } \\ \hline \multicolumn{4}{|l|}{ Variable expenses: } \\ \hline \multicolumn{4}{|c|}{ Variable manufacturing expenses } \\ \hline \multicolumn{4}{|l|}{ Sales commissions } \\ \hline \multicolumn{4}{|l|}{ Shipping } \\ \hline Total variable expenses & 0 & & 0 \\ \hline Contribution margin & 0 & & 0 \\ \hline \multicolumn{4}{|l|}{ Fixed expenses: } \\ \hline \multicolumn{4}{|c|}{ Salary of product-line manager } \\ \hline \multicolumn{4}{|l|}{ General factory overhead } \\ \hline \multicolumn{4}{|l|}{ Depreciation of equipment } \\ \hline \multicolumn{4}{|l|}{ Advertising-traceable } \\ \hline \multicolumn{4}{|l|}{ Insurance on inventories } \\ \hline \multicolumn{4}{|l|}{ Purchasing department } \\ \hline Total fixed expenses & 0 & 0 & 0 \\ \hline Operating loss & 0 & 0 & $ \\ \hline \end{tabular} b. Would you recommend that the Williams Products Inc line be discontinued? Yes No