Parino Company has three product lines in its retail stores: books, videos, and music. The allocated fixed costs are based on units sold and are unavoidable. Demand of individual products is not affected by changes in other product lines. Results of the fourth quarter are presented below:

		Books			Music			Videos				Total
Units sold			1,000			2,000			2,000				5,000
Revenue		$	24,000		$	48,000		$	30,000			$	102,000
Variable departmental costs			15,000			22,000			23,000				60,000
Direct fixed costs			3,000			6,000			4,000				13,000
Allocated fixed costs			4,400			8,800			8,800				22,000
Net income (loss)		$	1,600		$	11,200		$	(5,800	)		$	7,000

Parino Company has three product lines in its retail stores: books, videos, and music. The allocated fixed costs are based on units sold and are unavoidable. Demand of individual products is not affected by changes in other product lines. Results of the fourth quarter are presented below: Music Total Books 1,000 Videos 2,000 Units sold 2,000 5,000 Revenue Variable departmental costs Direct fixed costs Allocated fixed costs Net income (loss) $24,000 $48,000 $30,000 $102,000 60,000 13,000 15,000 22,000 23,000 6,000 3,000 4.400 1,600 4,000 8,8002200O 5,800 $11,200 7,000 Prepare an incremental analysis of the effect of dropping the Video product line. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Incremental revenue 42000 Incremental savings on variable costs -14000 Incremental savings on direct fixed costs -5000 Incremental decrease in profit to drop video line 9800