Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line:    Sales            $   2,825,000     Less: Variable expenses               1,327,750     Contribution margin               1,497,250     Less: Fixed expenses:                    Wages   $   1,017,000              Insurance on inventory      56,500              Advertising      621,500         1,695,000     Net operating income (loss)            $   (197,750   ) Management is concerned about the loss and is considering dropping the product line

Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line:

 Sales            $   2,825,000   

 Less: Variable expenses               1,327,750   

 Contribution margin               1,497,250   

 Less: Fixed expenses:                  

 Wages   $   1,017,000            

 Insurance on inventory      56,500            

 Advertising      621,500         1,695,000   

 Net operating income (loss)            $   (197,750   )

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 $84,750.

Calculate the increase or decrease in the operating income in both alternatives.