Halfway Industries Produces Two Products The Company's Fixed Costs Totaled $140,000, of Which $30,000 Can

Essay

Halfway Industries produces two products. Information about the products is as follows:
$\begin{array}{lrr}&\text { Clocks}&\text { Headphone:}\\\text { Units produced and sold } & 8,000&20,000\\\text { Selling price per unit } & \$ 16 &\$14\\\text { Variable costs per unit } & 10&9\end{array}$

The company's fixed costs totaled $140,000, of which $30,000 can be directly traced to Clocks and $90,000 can be directly traced to Headphones.
Required:
The effect on the firm's profits if the Headphone product is dropped would be: