A company is engaged in 3 distinct lines of production, their production cost per unit and selling price are as under: Particular A B Production (Units) 3000 2000 5000 SAR SAR SAR Material Cost 26 30 Wages 910 Variable Overhead Fixed Overhead 8 Total Cost 32 46 52 Selling Price 40 60 61 Profit 8 149 The management wants to discontinue one line and gives you the assurance that production in two other lines will rise by 50%. It intends to discontinue the line which production line as it is less profitable. You are required to calculate of profit from different production arrangement: [1.) If product 'A' is discontinued and the sale of product 'B' and 'C' are increased by 50% [2.) If product 'B' is discontinued and the sale of product 'A' and 'C' are increased by 50%. [3.) If product 'C' is discontinued and the sale of product 'A' and 'B' are increased by 50% 14. Do you agree to the scheme in principle? if so, do you think that the line which produces article 'A' should be discontinued ? [5.] Offer your comments and show necessary statements to support your decision