8,000 Items 18 and 19 are based on the following information: Toby Company produces and sells three products as follows: Product A Product B Product C Sales 40,000 30,000 25,000 Variable costs 19,000 15,000 10,000 Separable fixed costs 12,000 7,000 8,000 Allocated fixed costs 7,000 5,000 The company lost its lease and must move to a smaller facility. As a result, total allocated fixed costs will be reduced by 30%. However, one of its products must be discontinued in order for the company to fit in the new facility. 18. Which product line should the Company drop? A. Product A C. Product C B. Product B D. Product A and B 19. What is the expected net profit after the appropriate product has been discontinued? A. Php3,000 C.Php1,000 B. Php2,000 D. None