Pope Company produces a model fan, which currently has a net loss. Below are its sales and costs
Sales revenue
Less: Variable costs
Contribution margin
Less: Direct fixed costs
Segment margin
Less: Common fixed costs
Net operating income (loss)
$125,598
61,620
$7
46,462
$7
57,488
$7
Eliminating the model fan product line would eliminate all of direct fixed costs. All of the common fixed costs would be redistributed to Pope's remaining product lines.
By how much will Pope's net operating income increase or decrease if the fan is eliminated? If net income decreases, indicate with a -. Example, if net income decreases $1,000, indicate 1,000.