Following are sales and other operating data for the three products made and sold by Ranger Company:

In view of the net loss for Product C, Rangers management is considering dropping that product. All variable costs are direct costs and would be eliminated if Product C were dropped. Fixed costs are indirect costs; no fixed costs would be eliminated. Assume that the space used to produce Product C would be left idle.

Would you recommend the elimination of Product C? Give supporting computations.

Product Total Sales 600,000300,000 $200,000 $1,100,000 Manufacturing costs: Fixed Variable $ 60,000 $20,000 $ 60,000 280,000 220,000100,000 140,000 600,000 Selling and administrative expenses: Fixed Variable 52,000 90,000 $400,000$280,000 $202,000 $ 882,000 $ 200,000$ 20,000 $ (2,000) $ 218,000 20,000 40,000 20,000 12,000 20,000 30,000 Total costs Net income (loss)