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

					Product
	Total				A				B				C
Sales		$	170,000			$	70,000			$	40,000			$	60,000
Variable expenses			102,000				42,000				20,000				40,000
Contribution margin			68,000				28,000				20,000				20,000
Fixed expenses:
Rent			8,500				3,500				2,000				3,000
Depreciation			10,200				4,200				2,400				3,600
Utilities			6,800				2,800				1,000				3,000
Supervisors' salaries			9,100				2,100				1,000				6,000
Maintenance			5,100				2,100				1,200				1,800
Administrative expenses			17,800				4,200				4,000				9,600
Total fixed expenses			57,500				18,900				11,600				27,000
Net operating income		$	10,500			$	9,100			$	8,400			$	(7,000	)

The following additional information is available:

*	The factory rent of $3,000 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 $3,000 to $1,590.
*	All supervisors' salaries are avoidable.
*	If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $5,100 to $3,420.
*	Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,300.

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

(Click to select)SalesVariable expensesRentUtilitiesLost contribution marginMaintenanceDepreciation		$
Less fixed expenses avoided:
(Click to select)DiscountMaintenanceAdministrative expenseUtilitiesSupervisor's salaryDepreciationRent	$
(Click to select)Supervisor's salaryMaintenanceDiscountRentDepreciationAdministrative expenseUtilities
(Click to select)Supervisor's salaryRentDepreciationDiscountMaintenanceAdministrative expenseUtilities
(Click to select)UtilitiesMaintenanceDiscountAdministrative expenseDepreciationSupervisor's salaryRent
(Click to select)RentDiscountDepreciationSupervisor's salaryUtilitiesMaintenanceAdministrative expense
(Click to select)Advantage in dropping Product CDisadvantage in dropping Product C		$

b.

Should Product C be eliminated?

	No