Mr. Earl Pearl, accountant for Margie Knall Co., Inc., has prepared the following product-line income data:

					Product
	Total				A				B				C
Sales		$	100,000			$	50,000			$	20,000			$	30,000
Variable expenses			60,000				30,000				10,000				20,000
Contribution margin			40,000				20,000				10,000				10,000
Fixed expenses:
Rent			5,000				2,500				1,000				1,500
Depreciation			6,000				3,000				1,200				1,800
Utilities			4,000				2,000				500				1,500
Supervisors' salaries			5,000				1,500				500				3,000
Maintenance			3,000				1,500				600				900
Administrative expenses			10,000				3,000				2,000				5,000
Total fixed expenses			33,000				13,500				5,800				13,700
Net operating income		$	7,000			$	6,500			$	4,200			$	(3,700	)

The following additional information is available:

*	The factory rent of $1,500 assigned to Product C is avoidable if the product were dropped.
*	The company's total depreciation would not be affected by dropping C.
*	Eliminating Product C will reduce the monthly utility bill from $1,500 to $800.
*	All supervisors' salaries are avoidable.
*	If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $3,000 to $2,000.
*	Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,000.

Required:
a.	Prepare an analysis for Product C. (Input all amounts as a positive value.)

(Click to select) Sales Utilities Lost contribution margin Maintenance Rent Variable expenses Depreciation		$
Less fixed expenses avoided:
(Click to select) Depreciation Supervisor's salary Maintenance Administrative expense Utilities Discount Rent	$
(Click to select) Administrative expense Discount Utilities Supervisor's salary Maintenance Rent Depreciation
(Click to select) Depreciation Discount Maintenance Administrative expense Supervisor's salary Utilities Rent
(Click to select) Administrative expense Maintenance Supervisor's salary Rent Discount Depreciation Utilities
(Click to select) Maintenance Supervisor's salary Administrative expense Discount Utilities Rent Depreciation
(Click to select) Disadvantage in dropping Product C Advantage in dropping Product C		$

b.

Whether Product C should be eliminated.

	No
	Yes