Question: please solve Help Save Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line: Sales Less: Variable expenses $2, 875,000
please solve

Help Save Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line: Sales Less: Variable expenses $2, 875,000 Contribution margin 1, 351, 250 1, 523, 750 Less: Fixed expenses: Wages $1, 035, 080 Insurance on inventory 57,500 Advertising 632, 500 1, 725, 090 Net operating income (loss) $ (201, 250) 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 $86,250. Required: Calculate the increase or decrease in the operating income in both alternatives. Keep Accesories Product Line Drop Accesories Product Line Sales Fixed expenses Net operating income (loss)
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