Carsons Inc. makes three methods of lasers. Information on the three procedures are as follows.

	Product A	Product B	Product C
Sales	$300,000	$500,000	$200,000
Marable expenses	150,000	200,000	145,000
Contribution margin	150,000	300,000	55,000
Product specific fixed costs	30,000	80,000	35,000
Head Office costs (allocated)	90,000	150,000	60,000
Total Fixed Costs	120,000	230,000	95,000
Net Income	$30,000	$70,000	$(40,000)

If the company drops the product, these costs are no longer incurred.

Note: Head office costs are aLlocated to the three products based on relative sales.

Mark Smith, an excutive with the company, feels Product C should be discontinued to increase the company's net income.

Required:

a. Compute current net income for Carsons Inc.

b. Compute net income by product line & in total for Carsons Inc if the company discontinues Product C.

c. Should Carsons Inc eliminate product C? Why or why not?