Ivanhoe Toys management is considering eliminating product A, which has been showing a loss for several years. The companys annual income statement, is as follows:

		A		B		C		Total
Sales		$2,204,000		$1,405,000		$1,803,100		$5,412,100
Variable expenses		1,618,000		600,100		1,099,600		3,317,700
Contribution margin		$586,000		$804,900		$703,500		$2,094,400
Advertising expense		$523,000		$430,000		$520,000		$1,473,000
Depreciation expense		15,300		10,700		21,900		47,900
Corporate expenses		93,700		81,500		107,000		282,200
Total fixed expenses		$632,000		$522,200		$648,900		$1,803,100
Operating income		$(46,000)		$282,700		$54,600		$291,300

(b)

What would be the effect on income if product A were dropped?

Net income would select an option increase/ decrease by $ enter a dollar amount .

(c)

Management is considering making a new product using product As equipment. If the new products selling price per unit were $10, its variable costs were $5, and its advertising costs were the same as for product A, how many units of the new product would the company have to sell to make the switch from product A to the new product worthwhile?

Units

enter a number of units rounded to 0 decimal places