ABC company produces three products x, y, z

ABC Company produces three products, X, Y and Z. A segmented income statement with amounts given in thousands, follows: Product X Product Y Product Z Sales revenue 1,280 $ 185 300 Less: Variable expenses 1,115 45 225 Contribution margin 165 $ 140 $ 75 Less: Direct Fixed Expenses Equipment depreciation 50 15 10 Supervisor salaries 95 85 80 Segmented margin $ 20 $ 40 $ (15) Depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold. Each of the three products has a different supervisor whose position would be elimated if the associated product were dropped. Required: Compute the change in profit if ABC Company decides to drop Product Z. If ABC Company drops Product Z, the Company will also lose 20% sales of Product Y. Under this scenario, compute the change in profit if Company decides to drop Product Z