Assume that Painless Dental Clinics, Inc., offers three basic dental services. Here are its prices and costs:

	Price per Unit			Variable Cost per Unit			Units Sold per Year
Cleaning	$	180		$	110		7,500
Filling		460			440		2,000
Capping		1,275			590		500

Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $430,000 per year include building and equipment costs, marketing costs, and the costs of administration. Painless Dental Clinics is subject to a 20 percent tax rate on income.

A cleaning unit is a routine teeth cleaning that takes about 45 minutes. A filling unit is the work done to fill one or more cavities in one session. A capping unit is the work done to put a crown on one tooth. If more than one tooth is crowned in a session, then the clinic counts one unit per tooth (e.g., putting crowns on two teeth counts as two units).

Painless Dental Clinics, Inc., is considering becoming more specialized in cleanings and fillings. Assume the number of cleanings increased to 10,500 per year, the number of fillings increased to 2,100 per year, while the number of cappings dropped to zero? With this change in product mix, the company would increase its fixed costs to $480,000 per year. What would be the effect of this change in product mix on the clinics earnings after taxes per year?