Peppers Automotive produces auto parts for various automotive retailers. Peppers is evaluating the exhaust system division of the company and has come up with the following data for the year: net revenues are $1,450,000, variable costs are $510,000, and fixed costs are $595,000. Of the fixed costs, controllable fixed costs are $130,000 and noncontrollable fixed costs are $465,000. Peppers Automotive has further analyzed the exhaust division into three products: exhaust pipes, intake valves, and intake pipes. The income statement is available below. What is the change in profit in both the short run and long run by dropping intake valves from its product line? (Loss amounts should be indicated with a minus sign.)

Net revenues Variable costs xhaust Pipes Intake ValvesIntake Pipes $ 650,000 $ 450,000 350,000 220,000 65,000 225,000 Contribution margin Controllable fixed costs 585,000 65,000 225,000 65,000 130,000 0 Controllable margin Noncontrollable fixed costs 520,000 175,000 160,000 225,000 130,000 65,000 Contribution by profit center $ 345,000 (65,000) $ 65,000 Change in Profit In short run In long run