a Question Four Tiger Company sells two types of golf clubs, a driver and a putter. The company is considering dropping the putter to focus on drivers only. It is expected that sales of the driver will increase by 40% as a result. Dropping the putter will allow the company to cancel its monthly equipment rental costing $100 per month. The other existing equipment will be used for additional production of drivers. One employee earning $200 per month can be terminated if putter production is dropped. Tiger's other fixed costs are allocated and will continue regardless of the decision made. A condensed, budgeted monthly income statement with both products follows: Sales Direct materials Direct labour Equipment rental Other allocated overhead Operating income Driver $10,000 2,500 2,000 300 1.000 $4,200 Putter $8,000 2,000 1,200 2,600 2.100 $100 Total $18,000 4,500 3,200 2,900 3.100 $4,300 Prepare an incremental analysis to determine if Tiger should drop the putter