Keep or Drop Product 1 Product 2 Product 3 Total Sales $180,000 $110,000 $60,000 $350,000 VC 95,000 35,000 35,000 165,000 CM 85,000 75,000 25,000 185,000 FC 22,000 20,000 22,000 64,000 NI 63,000 55,000 3,000 121,000 Should we drop Product 3? If dropped, none of the fixed costs will be eliminated ***Analyze and compare results to Total Net Income. We will NOT drop product 3 if total net income decreases. Sales Less: VC Contribution Margin Less: FC Net Income