Accounting for Business Operations Fall 2022 Chapter 4 Class Problem Due September 15, noon in BB - name 8 Priyanshi Sharma A merchandising company currently sells three products-A, B, and C. Product profit reports for the last period are shown below: Sales Less: cost of goods sold Product A $100,000 Product B Product C $200,000 $150,000 (60,000) (120,000) (90,000) Gross margin 40,000 80,000 60,000 Less: selling and administrative costs Profit (50,000) (60,000) (55,000) ($10,000) $20,000 $5,000 A cost analysis reveals that cost of goods sold varies proportionately with sales (60%). Selling and administrative costs in total are $120,000 plus 10% of sales. The $120,000 of facility-sustaining selling and administrative cost will continue regardless of how many product lines the company maintains. Should the company keep or drop any of its existing product lines? Support your answer with a financial analysis, including product margins and margin ratios. What nonfinancial considerations should be given to the decision