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

Essay

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

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: