For Sonya, the following income statements are shown for its two product lines and the company as a whole:

	Fruits	Vegetables	Total
Sales	$500,000	$300,000	$800,000
Less: Variable expenses	300,000	270,000	550,000
Contribution margin	200,000	30,000	250,000
Less: Fixed expenses	170,000	80,000	270,000
Operating income	$30,000	($50,000)	($20,000)

Even if the Vegetable product line is dropped, some employees have to be kept anyway. Therefore, 10% of the Vegetables lines fixed expenses will continue.

1. If the Vegetables product line is dropped, what will happen to the profit for the company as a whole? Indicate the direction (increase or decrease) and amount (by how much).

2. Now suppose if Vegetables are dropped, sales of Fruits will drop by 30%. If the Vegetables product line is dropped, what will happen to the profit for the company as a whole? Indicate the direction (increase or decrease) and amount (by how much).