You skipped this question in the previous attempt Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line: Sales Less: Variable expenses Contribution margin Less: Fixed expenses Wages Insurance on inventory Advertising Net operating incone (loss) $2,800,000 1,200.00 1,600,000 $1,100,000 68,000 600,000 1,760.000 $ (160,000) Management is concerned about the loss and is considering dropping the product line. If the product line is dropped, a job has to be created elsewhere for a long-term employee currently earning an annual salary of $80,000. Required: Calculate the increase or decrease in the operating income in both alternatives. Keep Accesories Product Line Drop Accesories Product Line Sales S 0 S 0 Fixed expenses Net operating income oss) Prey 2 of 3 Next > o search O TI B 99