JPA Company makes three products. The following data is related to these products Product S D M Sales 400,000 800,000 300,000 Variable costs 240,000 480,000 180,000 Fixed costs 250,000 300,000 150,000 Assume that the company wants to drop the product M, the net income will be

1. $80,000

2. $100,000

3. $220,000

4. ($220,000)