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Wilians Products the, manufactures and sells a number of items, including school knapsacks. The company...

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Accounting

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Wilians Products the, manufactures and sells a number of items, including school knapsacks. The company has been experiencing iosses on the knapsacks for some time, as shown by the contribution format income statement beliow: "Allocated on the basis of machine-hours. Discontinuing the knapsacks would not affect sales of other product lines and wofld have no noticegible effect on the company's total general factory overhead or total purchasing department expenses. o. Compute the increase or decrease of net operating income if the Willams Products inc line is continued or discontinued. (Input all omounts as positive except Decreases in Sales, Decreoses in Contribution Margin, and Net Losses which should be indicoted by a minus sign.)

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