Sup pany, Fineastfed Problem 7.9 (LO1, 2) Dropping a Product Line Pantheon Gaming, a computer enhancement com- has three product lines: audio enhancers, video enhancers, and connection-speed accelerators. Common costs are allocated based on relative sales. A product line income statement follows: Pantheon Gaming Income Statement For the Year Ended December 31, 2020 Audio Video Accelerators Total Sales $1,200,000 $2,450,000 $2,400,000 $6,050,000 Less cost of goods sold 730,000 1,435,000 2,070,000 4,235,000 Gross margin 470,000 1,015,000 330,000 1,815,000 Less other variable costs 53,000 69,000 20,000 142,000 Contribution margin 417,000 946,000 310,000 1,673,000 Less direct salaries 155,000 175,000 65,000 395,000 Less common fixed costs: Rent 11,970 25,830 25,200 63,000 Utilities 4,370 9,430 9,200 23,000 Depreciation 5,890 12,710 12,400 31,000 Other administrative costs 79,230 170,970 166,800 417,000 Net income $ 160,540 $ 552,060 31,400 $ 744,000 Since the profit for accelerator devices is relatively low, the company is considering dropping this prod- uct line. Required a. Determine the annual impact on profit of dropping accelerator products. b. Discuss the potential qualitative effects of discontinuing the sale of accelerator products.