b) Chai Yetu Limited Company has three products of Luxury Blend, Supreme Blend and Nguvu Blend. The extract of the income statement for the three products indicate that Supreme blend is not generating enough income and the management are considering dropping the product line. Before doing so the analysis was to be done to justify the decision whether to keep or drop. At a glance supreme blend shows that it generate loss of TZS 1,500 how ever let us make differential analysis before final decision. Product Line Luxury Supreme Nguvu Total Blend Blend Blend TZS'000 TZS000 TZS'000 TZS 000 233,500 299.000 Sales 157,000 689,500 120,500 84,500 160,500 Variable Cost 365,500 113,000 72,500 138,500 324,000 Contribution Margin 43,000 45,500 56,000 144,500 Direct Fixed cost 31,000 137,500 60,000 46,500 Allocated Fixed cost 21,000 -1,500 42,000 22,500 Net income Required: Using an incremental approach determine whether or not the product should be dropped (12 Marks)