Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line- $2,950,000 1,386,500 1,563,500 Sales Less: Variable expenses Contribution margin Less: Fixed expenses: Wages Insurance on inventory Advertising Net operating income (loss) $1,062,000 59,000 649,000 1,770,000 $ (206,500) Management is concerned about the loss and is con ering 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 $88,500. Required: Calculate the increase or decrease in the operating income in both alternatives. Required: Calculate the increase or decrease in the operating income in both alternatives. Keep Accesories Product Line Drop Accesories Product Line Sales 0:57:57 Fixed expenses Book Net operating income (loss) Should the ladies' accessories product line be dropped? o Yes O No