Differential Analysis - Discontinued Operations Product X Product Y Product Z Total Revenue $202,500 $97,400 $53,500 $353,400 Variable Cost 111,375 43,830 37,450 192,655 Contribution Margin $91,125 $53,570 $16,050 $160,745 Fixed Cost 73,500 41,800 25,000 140,300 Operating Income (Loss) $17,625 $11,770 ($8,950) $20,445 Management is considering discontinuing Product Z as it is producing an Operating Loss. Fixed posts will NOT be materially affected if Product Z is discontinued. Further... Management believes that if they discontinue Product Z the Operating Income for the company will increase by $8,950. You disagree with their profit assessment. Complete the Variable Costing Income Statement if Product Z is discontinued. (Use 0 if appropriate, do not leave a field blank. A loss should be entered with a negative sign, not brackets.) Product X Product Y Product Z Total Revenue $202,500 $97,400 $ $ Variable Cost 111,375 43,830 Contribution Margin $91,125 $53,570 Fixed Cost 73,500 41,800 Operating Income (Loss) $17,625 $11,770 $ Should the company DISCONTINUE Product Z given the situation above? Should the company DISCONTINUE Product Z given the situation above? If management chooses to continue to produce Product Z which of these management actions would NOT help the company profitability