b) Mercer has three product lines in its retail stores: books, videos, and music. Results of the fourth quarter are presented below: Books 1,000 MusicVideos 2,000 Total 5,000 Units sold Revenue Variable departmental costs Direct fixed costs Allocated fixed costs Net income (loss) 2,000 RM20,000RM40,000 RM25,000 RM85,000 51,000 6,000 17,000 1,000 22,000 3,000 7.000 12,000 2,000 RM(5000) RM 8.000 RM 4000 RM 7,000 The allocated fixed costs are unavoidable. Demand for individual products are not affected by changes in other product lines. Required What will happen to profits if Mercer discontinues the Books product line? Show your computations (5 marks) Continued