Your Retail Store’s accountant prepared the following income statement for the ladies’ accessories product line: Sales $ 3,275,000 Less: Variable expenses 1,539,250 Contribution margin 1,735,750 Less: Fixed expenses: Wages $ 1,179,000 Insurance on inventory 65,500 Advertising 720,500 1,965,000 Net operating income (loss) $ (229,250) 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 $98,250. Required: Calculate the increase or decrease in the operating income in both alternatives. Should the ladies’ accessories product line be dropped? multiple choice Yes No