Based on the segment income statement below, Gourmet Sorbet is considering eliminating its Mango Tango line.

Revenue from Mango Tango sales	$500,000
Salaries for Mango Tango workers	(120,000)
Direct material costs for Mango Tango	(300,000)
Sunk costs (equipment depreciation)	(75,000)
Allocated company-wide facility-sustaining costs	(50,000)
Net loss	$ (45,000)

1. The total relevant costs in this decision add up to

a. $400,000.

b. $475,000.

c. $525,000.

d. $420,000.

2. If Mango Tango were eliminated, profitability would

a. increase $25,000.

b. increase $525,000.

c. decrease $80,000.

d. decrease $100,000.

Please show the necessary calculations, thanks!