. Due to difficult times, Good Years Products operates well below capacity and loses. The general manager had the company income statement segmented, and obtained the following figures:

	Product 1	Product 2	Product 3
Revenue	2,000,000.00	3,000,000.00	4,000,000.00
Fixed Cost	300,000.00	400,000.00	1,500,000.00
Variable Cost	1,500,000.00	3,100,000.00	3,400,000.00

Treat the following items independently of each other. Assume a short-run horizon and no inter-product effects. (Solutions required)

a) Should Product 3 be dropped if, by doing so, none of its fixed costs will be saved anyway? Explain. b) Should Product 2 be dropped if, by doing so, its PhP 400,000 fixed costs will be saved? Explain.