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

Clocks Headphones

Units produced and sold 8,000 20,000

Selling price per unit $16 $14

Variable costs per unit 10 9

The company's fixed costs totaled $140,000, of which $30,000 can be directly traced to Clocks and $90,000 can be directly traced to Headphones.

Required: What would be the effect on the firm's profits if the Headphone product is dropped: