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Xander's Muffins is trying to decide whether or not to continue a particular muffin flavour. The information shown is available for Xander's different muffin ranges.

Xander's Muffins is trying to decide whether or not to continue a particular muffin flavour. The information shown is available for Xander's different muffin ranges. If the range is dropped, the business will not have to pay the fixed costs and reduce the allocated common fixed costs by 80%.

Blueberry Raspberry White Chocolate Banana Walnut
Sales volume 500 units 500 units 500 units
Sales price $4 per unit $5 per unit $4.50 per unit
Variable costs $1.50 per unit $1.75 per unit $1.25 per unit
Direct fixed costs 1,000 1,000 1,000
Allocated common fixed costs 500 1500 500
Net income -250 -875 125

What will be the net profit for Xander's Muffins if the business drops the Banana and Walnut muffins?

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