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Keep/drop or add products, segments, divisions A company has three products: Product A, Product B and Product C. Income statements of the three product lines

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Keep/drop or add products, segments, divisions A company has three products: Product A, Product B and Product C. Income statements of the three product lines for the latest month are given below: 5. Product Line A B $467,000 $314,000 $598,000 Sales 321,000 169,000 Variable Costs 241,000 $277,000 $145,000 $226,000 Contribution Margin 112,000 86,000 91,000 Direct Fixed Costs 120,000 62,000 93,000 Allocated Fixed Costs $45,000 - $3,000 $42,000 Net Income R br Use the incremental approach to determine if Product B should be dropped? Show calculations or logic

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