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Wildhorse has three product lines in its retail stores: flipflops, sandals, and slippers. Results of the fourth quarter are presented below: Flipflops Sandals Slippers Total

Wildhorse has three product lines in its retail stores: flipflops, sandals, and slippers. Results of the fourth quarter are presented below:

Flipflops

Sandals

Slippers

Total

Units sold

1,220

2,440

2,440

6,100

Revenue

$24,400

$48,800

$30,500

$103,700

Variable departmental costs

20,740

26,840

14,640

62,220

Direct fixed costs

1,220

3,660

2,440

7,320

Allocated fixed costs

8,540

8,540

8,540

25,620

Net income (loss)

$(6,100)

$9,760

$4,880

$8,540

The allocated fixed costs are unavoidable. Demand of individual products are not affected by changes in other product lines. What will happen to profits if Wildhorse discontinues the Flipflops product line?

If Wildhorse discontinues the Flipflops product line profit will select an option increasedecrease by $enter a dollar amount .

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