Needham Manufacturing produces three products. The following table summarizes operations for the most recent year:

This is the third year that a loss has been reported for product Q72. Frank Needham, the owner and manager of Needham Manufacturing, stated at the recent meeting of senior managers, “It is time we stopped producing Q72.” If we had not produced this product this past year, our income would be $42,000 higher than what we achieved.” The company accountant has provided you with the following additional information: If product Q72 is eliminated, 40% of the fixed manufacturing cost attributed to Q72 would be eliminated. Also, if Q72 is eliminated, the sales of GT45 and R38 would each decline by 5% because they are associated products. 

Required 

What will be the change in corporate income at Needham Manufacturing if Q72 is discontinued?

Sales..... Direct materials cost.. Direct labor cost.... Fixed manufacturing overhead.. Product income...... Unallocated corporate fixed costs Corporate income..... ... GT45 R38 Q72 TOTAL $2,654,000 $3,295,000 $4,576,000 $10,525,000 1,350,000 1,645,000 2,378,000 5,373,000 935,000 1,125,000 2,035,000 4,095,000 125,000 167,000 205,000 497,000 $ 244,000 $ 358,000 $ (42,000) $ $ 560,000 325,000 235,000