Your Retail Stores accountant prepared the following income statement for the ladies accessories product line:

Sales				$	2,800,000
Less: Variable expenses					1,200,000
Contribution margin					1,600,000
Less: Fixed expenses:
Wages	$	1,100,000
Insurance on inventory		60,000
Advertising		600,000			1,760,000
Net operating income (loss)				$	(160,000	)

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 $80,000.

Required:

Calculate the increase or decrease in the operating income in both alternatives.