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Omar Industries manufactures two products: Regular and Super. The results of operations for 201 follow....

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Accounting

Omar Industries manufactures two products: Regular and Super. The results of operations for 201 follow.
Fixed manufacturing costs included in cost of goods sold amount to $3 per unit for Regular and $20 per unit for Super. Variable selling expenses are $4 per unit for
Regular and $20 per unit for Super; remaining selling amounts are fixed.
Omar Industries wants to drop the Regular product line. If the line is dropped, company-wide fixed manufacturing costs would fall by 10% because there is no
alternative use of the facilities. What would be the impact on operating income if Regular is discontinued?
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