Sheridan Toys' management is considering eliminating product A which has been showing a loss for several years. The company's annual income statement is as follows: B C Total Sales $2.289 000 $1,405,000 51.807 800 $5,501 800 Vanable expenses 1.689 000 600 700 1,084,300 3374000 Contribution margin S600.000 804 300 $723,500 $2 127 800 $505.000 $426,000 5522000 $1.453,000 Advertising expense Depreciation expense 17.700 11.000 20 100 48.800 Corporate expenses 93.000 B2 100 105 600 281 600 Total fixed expenses $616,600 S510 100 5647 700 $1,783.400 Operating income $(18.600) $285,200 575,800 S344.400 What would be the effect on income if product A were dropped? Net income would decrease by $ Management is considering making a new product using product A's equipment If the new product's selling price per unit were $10 its variable costs were $5 and its advertising costs were the same as for product A how many units of the new product would the company have to sell to make the switch from product A to the new product worthwhile? Units