David's Robotics Company manufactures three products. Profit computations for these products for the most recent year are as follows:

David's Robotics traditionally allocates manufacturing overhead based on the level of direct labor cost'$2 of manufacturing overhead are allocated for each $1 of direct labor cost. However, of the company's $1,000,000 in manufacturing overhead costs, $700,000 is directly related to the number of product batches produced during the year. The number of batches of the three products for the year was as follows: Bender Model, 20 batches; Calculon Model, 30 batches; Flexco Model, 50 batches. The remaining $300,000 in overhead is for facility support (property taxes, security costs, general administration, and so forth).
In an effort to reduce or eliminate the total company loss ($120,000), David's Robotics has decided to drop Flexco Model. What would total company profit (or loss) have been in the most recent year if Flexco Model had been dropped at the beginning of theyear?

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Bender Model Calculon Model Flexco Model Total S 800,000 $1,800,000 (200,000) Sales Direct materials. Direct labor. Manufacturing overhead Profit $ 300,000 (50,000) (100,000) $ 80,000 (150,000) (200,000) (400,000) $ (50,000) (250,000) (500,000) (1,000,000) (500,000) S(150,000) $ (120,000)