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 income (loss) $1,107,000 61,500 676,500 $3,075,000 1,445,250 1,629,750 1,845,000 $ (215,250) 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 $92,250. Required: Calculate the increase or decrease in the operating income in both alternatives. Sales Fixed expenses Net operating income (loss) Keep Accesories Product Line Drop Accesories Product Line Should the ladies' accessories product line be dropped? Yes No