Brevard Industries produces two products. Information about the products is as follows:

	Product 1				Product 2
Units produced and sold		5,850				11,900
Selling price per unit	$	20			$	18
Variable costs per unit		14				13

The company's fixed costs totaled $89,000, of which $16,900 can be directly traced to Product 1 and $41,900 can be directly traced to Product 2. The effect on the firm's profits if Product 2 is dropped would be a:

$17,600 decrease.

$42,600 decrease.

$17,600 increase.

$42,600 increase.