AJS Medical Supply Company sells medical products through 3 channels: hospital supplies, retail stores and e-business. It is trying to decide whether to continue distributing hospital supplies. The following information is available for AJSs business segments. Assume that all direct fixed costs could be avoided if a segment is dropped and that the total common fixed costs would remain unchanged if a segment is dropped. (Figures in rupees):

	Hospital Supplies	Retail Stores	E-business
Sales	12,00,000	44,00,000	36,00,000
Variable Costs	6,40,000	20,00,000	14,00,000
Contribution Margin	5,60,000	24,00,000	22,00,000
Direct Fixed Costs	5,00,000	8,00,000	9,00,000
Allocated Common Fixed Costs	2,00,000	7,00,000	6,00,000
Net Income	(1,40,000)	9,00,000	7,00,000

Advise the management as to whether the Hospital supplies segment should be dropped or continued. Give reasons and explanations for your answer showing how the total profit of AJS would change if the segment is dropped.