Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line: $2,975,000 1,398,250 1,576,750 Sales Less: Variable expenses Contribution margin Less Fixed expensest Wages Insurance on inventory Advertising Net operating income (loss) $1,071,000 59,500 654,500 1,785,000 5 (208,250) 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 $89,250. Required: Calculate the increase or decrease in the operating income in both alternatives. Keep Accesorios Product Line Drop Accesories Product Line Sales Less: Variable expenses Contribution margin Fixed expenses Less: Wages expenses Less Insurance on inventory expenses Required: Calculate the increase or decrease in the operating income in both alternatives. Keep Accesories Product Line Drop Accesories Product Line Sales Less: Variable expenses Contribution margin Fixed expenses Less Wages expenses Less Insurance on inventory expenses Less Advertising expenses Net operating income (loss) Should the ladies' accessories product line be dropped? Yes O No