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37, Paxton Products has three product lines: A, B, and C. C Total $90,000 $150,000 $200,000 $440,000 Sales Variable costs 50,000 120,000 100,000270,000 40,000 30,00o

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37, Paxton Products has three product lines: A, B, and C. C Total $90,000 $150,000 $200,000 $440,000 Sales Variable costs 50,000 120,000 100,000270,000 40,000 30,00o 100,000 170,000 15.000 40,000 50,000 105,000 $25,000 $(10,000) $50,000 $65,000 Contribution margin Fixed costs Net income Management is considering dropping product line B. In order for the dropping of product line B to not cause an overall decrease in profits, product line B's avoidable fixed costs should be at least a. $70,000. b. $40,000. C. $30,000. d. $10,000

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