- + e ID Page view A Read aloud Draw Question 1: Case D Macaulay Company has three product lines-D, E, and F. The following information is available: F Sales Variable costs Contribution margin Fixed expenses Operating income (loss) D $70,000 140.000) 30,000 (15.000) $15,000 $40,000 (20.000) 20,000 (15,000 $5,000 $30,000 (10.000 20,000 125.000) ($5.000) Macaulay Company is thinking of dropping product line F because it is reporting an operating loss. Assuming fixed costs are unavoidable, if Macaulay Company drops product line F, and rents the space formerly used to produce product F for $17,000 per year, Required: 1. How would Dropping line F affect the operating income of Macaulay Company 2- What is the new total operating income for Macaulay if line F was dropped 3