Following are sales and other operating data for the three products, A,B and C, produced and sold by Sanger Company:

	A	B	C
Sales	$300,000	$150,000	$100,000
Manufacturing Costs:
Fixed	$30,000	$10,000	$30,000
Variable	$140,000	$110,000	$50,000
Total manufacturing costs	$170,000	$120,000	$80,000
Selling and administrative costs:
Fixed	$10,000	$10,000	$6,000
Variable	$20,000	$10,000	$15,000
Total Selling and admin costs	$30,000	$20,000	$21,000
Total Costs	$200,000	$140,000	$101,000
Net income(loss)	$100,000	$10,000	$(1,000)

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

Required:

A. Prepare a comparative income statement showing the total net income for the firm both with and without Product C.

B. Prepare a brief analysis of just the relevant revenues and costs pertaining to just Product C.

C.Would you recommend the elimination of Product C?