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Great Wall Ltd has two products. Information about these products is as follows: Abang Adik Units produced and sold 100 400 Selling price per unit

Great Wall Ltd has two products. Information about these products is as follows:



Abang

Adik

Units produced and sold

100

400

Selling price per unit

$400

$200

Variable expenses per unit

$260

$70

The company's fixed costs totaled $80,000, of which $20,000 can be avoided if Abang is dropped and $40,000 can be avoided if Adik is dropped.

The company’s total profits, if Abang is dropped, would be:


A profit of $12,000

A profit of $8,000

A loss of $8,000

A loss of $12,000

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