Brevard Industries produces two products, Information about the products is as follows Help Units produced and sold Selling price per unit Variable costs per unit Product 1 5,550 $ 17 11 Product 2 11,600 $ 15 10 The company's fixed costs totaled $86,000, of which $16,600 can be directly traced to Product and $41.600 can be detectly aced to Product 2. The effect on the firm's profits if Product 2 is dropped would be a Multiple Choice $16,400 Increase Ortega Industries manufactures 19,900 components per year. The manufacturing cost of the components was determined to be as follows: Direct materials Direct laber Variable manufacturing overhead Fixed manufacturing overhead Total $178,000 380,000 184,900 260,000 $922,000 Assume that the fixed manufacturing overhead reflects the cost of Ortega's manufacturing facility. This facility cannot be used for any other purpose. An outside supplier has offered to sell the component to Ortega for $34. If Ortega Industries purchases the component from the outside supplier the effect on operating profits would be a