ABC crop, makes three products and is reviewing the profitability of its product line. You are given the following budgeted data about the firm for the coming year The company is concerned about the loss on the product c. It is considering to cease its production and produce additional 60, 000 units of products B and additional 20, 000 units of products A instead You are also given the following information all production is sold All material cists are variable 40% of labor costs for each products is fixed in nature 60% of overhead costs are variable ceasing production c would eliminate the fixed labor charge associated with it Increasing the production of product B by 60, 000 would mean that the fixed labor cost associated with product B would rise by 20%, the variable overhead cost would rise by 40% and its selling price would have to be decreased by $2 in order to achieve the increased sales The price of product should be decreased by $1 prepare a contribution income statement on the basis of original budget if product c is deleted decide if it's necessary to drop product c