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 Statement-School Knapsacks For the Quarter Ended June 30 Sales Variable expenses: Variable manufacturing expenses Sales commissions Shipping $295,000 $82,600 32,450 8,850 Total variable expenses 123,900 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 171,100 11,500 58,900* 22,500 54,300 4,900 34.1201 Total fixed expenses 186,220 Operating loss $(15,120) 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. Required: Required: 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.) a. Difference: Operating Income Keep School Drop School Knapsack Knapsack Increase or (Decrease Sales Variable expenses Variable manufacturing expenses Sales commissions Shipping Total variable expenses 0 0 Contribution margin Fixed expenses: 0 0 Salary of product-line manager General factory overhead Depreciation of equipment Advertising-traceable Insurance on inventories Purchasing department Total fixed expenses 0 0 Operating loss 0 $ 0 0