Mr. Earl Pearl, accountant for Margie Knall, 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 additional information below is available. o The factory rent of $1,500 assigned to Product C is avoidable if the product is dropped. o The company's total depreciation would not be affected by dropping Product C. o Eliminating Product C will reduce the total monthly utility bill from $4,000 to $3,000. o All supervisory salaries for Product C would be avoidable. o If Product C is discontinued, the maintenance department will be able to reduce total monthly expenses from $3,000 to $2,200. o Elimination of Product C will make it possible to cut two persons from the administrative staff. Currently, their combined salaries total $2,500. Required: Prepare an analysis showing whether Product C should be eliminated. Provide numerical support for your findings