Mercer has three product lines in its retail stores: books, videos, and music. Results of the fourth quarter are presented below: 
The allocated fixed costs are unavoidable. Demand of individual products are not affected by changes in other product lines.
Instructions
What will happen to profits if Mercer discontinues the Books product line?
Definitions:
Social Rate
Often refers to the rate of return on a public investment or project that includes both the private and external benefits to society.
NPV Analysis
A method of calculating the present value of an investment's expected cash flows minus the initial investment cost to assess profitability.
Externalities
The unintended positive or negative consequences of an economic activity on unrelated third parties.
Greenhouse Gas Emissions
The release of gases into the atmosphere that trap heat, leading to global warming and climate change.
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