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Your Retail Store's accountant prepared the following income statement for the ladies accessories product line Sales Less: Variable expenses $3.175.000 1.492.250 1.682.750 Contribution margin Less:

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Your Retail Store's accountant prepared the following income statement for the ladies accessories product line Sales Less: Variable expenses $3.175.000 1.492.250 1.682.750 Contribution margin Less: Fixed expenses Wages Insurance on inventory Advertising $1.143.000 63.500 698.500 1.905,000 Net operating income (loss) S (222.250) 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 $95 250 Required: Calculate the increase or decrease in the operating income in both alternatives Keep Accesories Product Line Drop Accesories Product Line

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