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Question 2 T&G Co. manufactures three types of computer desks. The income statement for the three products and the whole company is shown below: Product A Product B Product C Total Sales $83,000 $95,000 $120,000 $298,000 Variable costs 41,000 60,000 110,000 211,000 Fixed costs 23,100 16,500 16,500 56,100 Total costs 64,100 76,500 126,500 267,100 Operating income (loss) $18,900 $18,500 $(6,500) $30,900 The company produces 1,000 units of each product. The company's capacity is 17,000 machine hours. The machine hours for each product are 7 hours for Product A, 5 hours for Product B, and 5 hours for Product C. Fixed costs are allocated based on machine hours. If the current production levels are maintained, should the company eliminate Product C? T&G Co. eliminate Product C. If the company can sell unlimited quantities of any of the three products, which product should be produced? T&G Co. should produce Suppose the company can sell unlimited quantities of any of the three products. If a customer wanted to purchase 500 units of Product C, what would the minimum sale price per unit be for this order?Suppose the company can sell unlimited quantities of any of the three products. If a customer wanted to purchase 500 units of Product C, what would the minimum sale price per unit be for this order? Minimum sale price $ per unit The company has a contract that requires it to supply 500 units of each product to a customer. The total market demand for a single product is limited to 1,500 units. How many units of each product should the company manufacture to maximize its total contribution margin including the contract? T&G Co. should manufacture Product A units Product B units Product C units