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Discontinuing a segment Budweiser makes and sells two products, Bud Light and Michelob. The Income statement for the prior year is as follows: in miliona

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Discontinuing a segment Budweiser makes and sells two products, Bud Light and Michelob. The Income statement for the prior year is as follows: in miliona Dud Light Michalob Sales $16,000 $24,000 Variable cost of goods sold 5.000 10.000 Manufacturing contribution margin $10,000 $14,000 Fixed production 5,000 7,000 Variable selling and administration 2,000 5,000 Fixed selling and administration 1.000 3.000 Net income $2.000 151.000) Fixed costs are unavoidable and are allocated to products on the basis of sales revenue. If Michelobis dropped, sales of Bud Light are expected to increase by 40 percent next year. Should Michelob be dropped

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