Question Completion Status: QUESTION 7 The Dubs Division of Fast Company (the parent company) produces wheels for off-road sport vehicles. Dubs has two products, 1 and 2. Product 1 (Pl) is sold in bulk to customizing shops, while Product 2 (P2) is sold directly to consumers. Dub's estimated operating data for the year follows. Product 1 Product 2 Sales Price $250 each $320 each Var Mfg $50 each $55 each Var G&A $40 each $65 each Fixed Mfg $100, 000 $150, 000 Fixed G&A $ 80, 000 $120, 000 Units Produced 1, 000 2, 000 Product Margin ($20, 000) $130, 000 The Dubs division is currently operating at 758 of it's maximum capacity, producing 1, 000 units of Pl and 2,000 units of P2. Due to its lack of profitability, management is considering dropping Pl. Management anticipates that dropping Pl will shift 470 units of demand to P2. Further, avoidable fixed manufacturing costs of $60,000 and avoidable fixed G&A costs of $30, 000 could be saved annually. If this action is taken what would be the increase in the total product margin (equals divisional profitability) ? Round to the Nearest $1.00. If the result decreases profits use a negative number, e.g. -2000