$[$The following information applies to the questions displayed below.$]$

Diego Company manufactures one product that is sold f$$r $$77$ per unit in

two geographic regions$-$the East and West regions. The following

information pertains to the company's first year of operations in which it

produced $48,000$ units and sold $43,000$ units.

The company sold $33,000$ units in the East region and $10,000$ units in the

West region. It determined that $$220,000$ of its fixed selling and

administrative expense is traceable to the West region, $$170,000$ is

traceable to the East region, and the remaining $$66,000$ is a common

fixed expense. The company will continue to incur the total amount of its

fixed manufacturing overhead costs as long as it continues to produce

any amount of its only product.

Diego is considering eliminating the West region because an internal$$y generated

report suggests the region's total gross margin in the first year of operations was $$50,00$

less than its traceable fixed selling and administrative expenses. Diego believes that if it

drops the West region, the East region's sales will grow by $5\%$ in Year $2.$ Using the

contribution approach for analyzing segment profitability and assuming all else remains

constant in Year $2,$ what would be the profit impact of dropping the West region in Year $2$