Blaine Avenue Company manufactures three products. Profit computations for these

three products for Year $1$ are given below.

Blaine Avenue has a total of $$1,000,000$ in manufacturing overhead costs. Of this amount,

$$700,000$ is directly related to the number of product batches produced during the year.

The number of batches of the three products for Year $1$ was as follows: Product X$,20$

batches; Product Y$,30$ batches; Product Z $50$ batches. The remaining $$300,000$ in overhead

is for facility support $($property taxes, security costs, general administration, etc.$)$ and

doesn't not vary at all with the level of activity. What would total company NET INCOME

be if the Product Y line were dropped? Assume that Blaine Avenue has no other costs or

expenses except those described here.

profit of $$180,000$

loss of $$120,000$

profit of $$300,000$

loss of $$260,000$

profit of $$30,000$

$$0-$ no profit or loss

loss of $$270,000$

profit of $$40,000$