PROBLEM 7-9. Dropping a Product Line [LO 1, 2] Pantheon Gaming, a c ment company, has three product lines: audio enhancers, video enhancers, and con omputer enhance nection-speed costs are allocated based U Pantheon Gaming Income Statement For the Year Ended December 31, 2017 Total Accelerators Video Audio 2,400,000 2,070,000 $6,050,000 4,235,000 1,815,000 142,000 1,673,000 395,000 $1,200,000 $2,450,000 730,000 1,435,000 470,000 1,015,000 Less cost of goods sold Gross margin Less other variable costs Contribution margitn 330,000 946,000 175,000 417,000 155,000 Less direct salaries Less common fixed costs 25,830 9,430 25,200 9,200 12,400 166,800 s 160,540 552,060 31,400 11,970 7 63,000 23,000 31,000 417,000 $ 744,000 4,370 5,890 Depreciation Other administrative costs 12,710 170,970 79,230 2 Net income Since the profit for accelerator devices is relatively low, the company is considering dropping this product line REQUIRED a. Determine the annual impact on profit of dropping accelerator products b. Discus he potential qualitative effects of discontinuing the sale of accelerator products