Management is concerned about the losses associated with product line A and is considering dropping this product line. Allocated fixed costs are assigned to product lines based on sales. If product line A is eliminated, total allocated fixed costs are assigned to the remaining product lines, and all variable and direct fixed costs for product line A will be eliminated.

1. Perform differential analysis using the format presented in Figure 4.6 "Product Line Differential Analysis for Barbeque Company". Assume keeping all product lines is Alternative 1, and dropping product line A is Alternative 2.
2. Which alternative is best?
3. Summarize the result of dropping product line A using the format presented "Summary of Differential Analysis for Barbeque Company".
4. why the loss shown for product line A in the segmented income statement might be misleading to management.