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Brevard Industries produces two products. Information about the products is as follows: Units produced and sold Selling price per unit Variable costs per unit Product

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Brevard Industries produces two products. Information about the products is as follows: Units produced and sold Selling price per unit Variable costs per unit Product 1 4,750 $ 17 11 Product 2 10,800 15 $ 10 The company's fixed costs totaled $78,000, of which $15,800 can be directly traced to Product 1 and $40,800 can be directly traced to Product 2. The effect on the firm's profits if Product 2 is dropped would be a: $13,200 increase. O $38,200 increase. $38,200 decrease. O $13,200 decrease

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