Harmark has three product lines in its retail stores: kites, wind socks, and flags. Results of the fourth quarter are presented below: Units sold Revenue Variable departmental costs Direct fixed costs Allocated fixed costs Net income (loss) Kites 1,000 $ 22,000 17,000 1,000 8,000 $ (4,000) Wind Socks 2,000 $ 40,000 $ 22,000 3,000 8,000 7,000 Flags If Harmark discontinues the Kites product line, there will be drop 2,000 12,000 $ 23,000 $ 85,000 2,000 8,000 $ 1,000 Total $ in profit by $ 5,000 51,000 6,000 24,000 The allocated fixed costs are unavoidable. Demand of individual products is not affected by changes in other product lines. What will happen to profits if Harmark discontinues the Kites product line? 4,000

The Allocated fued costs are unavoidable Demand of individuat products is not affected by changes in other product lines. What will happen to profits if Harmarkdbcontioues the Kits product line? If Harmark docontinues the Kites produce tine, there will be in profitbys