Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line: Sales Less: Variable expenses $2,850,000 1,339,500 1,510,500 Contribution margin Less: Fixed expenses: Wages Insurance on inventory Advertising $1,026,000 57,000 627,000 1,710,000 Net operating income (loss) $ (199,500) 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 $85,500 Required: Calculate the increase or decrease in the operating income in both alternatives. Keep Accesories Product Line Drop Accesories Product Line Sales Fixed expenses Type here to search O BI e - - Han Products manufactures 50,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct materials Direct labour Variable overhead Fixed overhead $ 5.50 11.50 4.50 10.20 Total cost per part $31.70 An outside supplier has offered to sell 50,000 units of part 5-6 each year to Han Products for $28.00 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $100,000. However, Han Products has determined that two-thirds of the fixed overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: What is the net dollar advantage or disadvantage of accepting the outside supplier's offer? (Do not round intermediate calculations)