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ABC has been experiencing losses on its Gidget line for several years. Here is the most recent contribution margin statement: Sales 850,000 VC Variable Manufacturing

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ABC has been experiencing losses on its Gidget line for several years. Here is the most recent contribution margin statement: Sales 850,000 VC Variable Manufacturing 330,000 Sales Commissions 42,000 Shipping 18.000 Total VC 390,000 Contribution Margin 460,000 FC Advertising (general) 270,000 Depreciation (no resale) 80,000 General Factory OH 105,000 Product Manger Salary 30,000 Insurance on Inventory 8,000 Quality Department 45.000 538.000 Net Op Loss (78,000) The general factory overhead is a common cost allocated on the basis of machine hours Total FC The Quality department is a common cost allocated on the basis of units. How much will profits change if this line is dropped

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