ABC Tax is evaluating the profitability of their two customers, A and B. Total fixed costs are allocated evenly between customer A and B, and will remain the same whether they add or drop customers. Should ABC Tax drop customer B? The profit/loss for each customer is shown below. Should customer B be dropped?

	A	B
Revenue	250,000	140,000
Variable costs	112500	63000
Contribution margin	137,500	77,000
Allocated fixed costs	80000	80000
Customer profit (loss)	57,500	-3,000

		No, profit will decrease if Customer B is dropped.
		Yes, because any customer showing a loss should be dropped.
		Yes, because their revenues are much lower than Customer A.
		Yes, profit will increase if Customer B is dropped.