Following are sales and other operating data for the three products made and sold by Legacy Corporation: Product A B C Total Sales P 600,000 P 300,000 P 200,000 P 1,100,000 Less: Manufacturing costs: Fixed 60,000 20,000 60,000 140,000 Variable 280,000 220,000 100,000 600,000 Selling and administrative expenses: Fixed 20,000 20,000 12,000 52,000 Variable 40,000 20,000 30,000 90,000 Total costs P 400,000 P 280,000 P 202,000 P 882,000 Net income P 200,000 P 20,000 P (2,000) P 218,000 Required: (Support your answers by showing your computations.) 1. In view of the net loss for Product C, Legacys 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. 2. Would you recommend the elimination of Product C? Give supporting computations.