3 A business sells three product lines listed below After reviewing each product's net income (loss), a decision must be made to determine if there is a need to drop a product line Particulars Product A Product B Product C Sales revenue $110,000 $77,000 $33,000 Variable costs 77,000 52,000 25,500 Contribution margin 33,000 25,000 7,500 Direct fixed costs 3,200 2,400 3,000 Allocated fixed costs 16,800 11,760 5,040 Net income (loss) $13,000 $10,840 $(540) Show the impact of removing Product B on the net profit of the two other product lines 3 marks ANSWER Particulars

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3  A business sells three product lines listed below  After reviewing each product's net income (loss), a decision must be made to determine if there is a need to drop a product line  Particulars Product A Product B Product C Sales revenue $110,000 $77,000 $33,000 Variable costs 77,000 52,000 25,500 Contribution margin 33,000 25,000 7,500 Direct fixed costs 3,200 2,400 3,000 Allocated fixed costs 16,800 11,760 5,040 Net income (loss) $13,000 $10,840 $(540) Show the impact of removing Product B on the net profit of the two other product lines   3 marks  ANSWER  Particulars

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3. A business sells three product lines listed below. After reviewing each product's net income (loss), a decision must be made to determine if there

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