Pepper$$s Automotive produces auto parts for various automotive retailers. Pepper$$s is evaluating the exhaust system division of the company and has come up with the following data for the year: net revenues are $$1,360,000,$ variable costs are $$468,000,$ and fixed costs are $$556,000.$ Of the fixed costs, controllable fixed costs are $$124,000$ and noncontrollable fixed costs are $$432,000.$

Pepper$$s Automotive has further analyzed the exhaust system division into three products: exhaust pipes, intake valves, and intake pipes. The income statement is available below.

If intake valves were dropped, what would be the change in profits in the short run and the long run, respectively?Pepper's Automotive produces auto parts for various automotive retailers. Pepper's is evaluating the exhaust system

division of the company and has come up with the following data for the year: net revenues are $$1,360,000,$ variable costs

are $$468,000,$ and fixed costs are $$556,000.$ Of the fixed costs, controllable fixed costs are $$124,000$ and noncontrollable

fixed costs are $$432,000.$

Pepper's Automotive has further analyzed the exhaust system division into three products: exhaust pipes, intake valves, and intake

pipes. The income statement is available below.

If intake valves were dropped, what would be the change in profits in the short run and the long run, respectively?

Short run: $$148,000$ decrease; long run: $$62,000$ increase

Short run: $$210,000$ increase; long run: $$62,000$ decrease

Short run: $$148,000$ increase; long run: $$62,000$ decrease

Short run: $$62,000$ increase; long run: $$148,000$ decrease