E8-22A Discontinuing a product line (Learning Objective 4) Suppose Better Harvest is considering discontinuing its organic dried fruit product line Assume that during the past year, the organic dried fruit's product line income statem showed the following: ement $5,250,000 6,450,000 1 Sales revenue 2 Less: Cost of goods sold 3 Gross profit 4 Less: Operating expenses 5 Operating income (loss) 6 1,200,000) 1,500,000 2,700,000) Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are fixed. Since the organic dried fruit line is just one of the company's fruit operations, only $775,000 of direct fixed costs (the majority of whicdh is advertising) will be eliminated if the product line is discontinued. The remainder of the fixed the product line, what will happen to the company's operating income? Shou Harvest discontinue the product line? costs will still be incurred by the company. If the company decides to discontinue ld Better