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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 Product 2 5,850 11,900 $ 20 $ 18 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: Multiple Choice $42.600 Increase 0 $17600 decrease $42.600 decrease 517600 increase

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