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Williams Products Inc. manufactures and sells a number of items, including school knapsacks. The company has been experiencing losses on the knapsacks for some time, as shown by the contribution format income statement below: $265,000 $74,200 29.150 2.950 WILLIAMS PRODUCTS INC. Income Statement-School Kapaneks For the Quarter Ended June 30 Sales Variable expensest Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses Salary of product-line manager General factory overhead Depreciation of equipment (no resale value) Advertising-traceable Insurance on inventories Durchasing department Total tined expenses Operating loss 111,300 153,700 10,000 52,600 19.500 52,200 4,300 31.2407 169,840 5626240) Allocated on the basis of machine-hours. fallocated on the basis of sales dollars. Discontinuing the knapsacks would not affect sales of other product lines and would have no noticeable effect on the company's total general factory overhead or total purchasing department expenses Required: a. Compute the increase or decrease of net operating income of the Williams Products incline is continued or discontinued [Input all amounts as positive except Decreases in Sales, Decreases in Contribution Margin, and Net losses which should be Indicated by a minus sign) a. Compute the increase or decrease of net operating income if the Williams Products Inc line is continued or discontinued. (Input all amounts as positive except Decreases in Sales, Decreases in Contribution Margin, and Net Losses which should be Indicated by a minus sign.) Keep School Knapsack Drop School Knapsack Difference: Operating Income Increase or (Decreaso) 0 0 0 Sales Variable expenses Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses Salary of product-line manager General factory overhead Depreciation of equipment Advertising--traceable Insurance on inventories Purchasing department Total fixed expenses Operating loss O 0 0 S 0 $ 0 $ 0

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