Required information [The following information applies to the questions displayed below.] 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 $1,150,000, variable costs are $370,000, and fixed costs are $465,000. Of the fixed costs, controllable fixed costs are $110,000 and noncontrollable fixed costs are $355,000. Pepper's Automotive has further analyzed the exhaust system division into three products: exhaust pipes, intake valves, and intake pipes. The income statement is avallable below. f intake valves were dropped, what would be the change in profits in the short run and the long run, respectively? Short run: $120,000 decrease; long runc $55,000 increase Short run: $175,000 increase; long run: $55,000 decrease Short run: $120,000 increase; long run: $55,000 decrease Short run: $55,000 increase; long run: $120,000 decrease