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

please solve Help Save Your Retail Store's accountant prepared the following income

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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