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GreatSea Ltd has two products. Information about these products is as follows: Abu Bakar Units produced and sold 150 300 Selling price per unit $400

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

Abu

Bakar

Units produced and sold

150

300

Selling price per unit

$400

$200

Variable expenses per unit

$260

$70

The company's fixed costs totalled $90,000, of which $40,000 can be avoided if Abu is dropped and $10,000 can be avoided if Bakar is dropped.

The companys total profits, if Abu is dropped, would be:

$ 2,000

$12,000

($11,000)

($28,000)

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