Furniture Classics makes outdoor furniture from aged wood. The companys primary product lines are chairs and tables.

Below is data for the recent quarter:

	Chairs	Tables	Total
Quantity sold	8,000	1,500
Revenue	$800,000	$375,000	$1,175,000
Direct materials	288,000	140,625	428,625
Direct labor	192,000	46,875	238,875
Contribution margin	$320,000	$187,500	$507,500
Traceable fixed costs	125,000	100,000	225,000
Allocated fixed costs	75,000	75,000	150,000
Profit before taxes	$120,000	$12,500	$132,500

To encourage sales of tables, management is considering rewarding the salesperson who sells the most tables in each quarter with an all-expense paid vacation for two in Hawaii. This incentive is expected to increase the sales of tables by 288 each quarter. The cost of the Hawaii vacation is estimated to be $6,000.

1. Based on the current data, should either product be discontinued?
2. How many additional tables need to be sold each quarter to justify the incentive?
3. Based on these additional units and the incentive trip, what is the expected increase to profit before taxes for each quarter?