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''Of the total fixed costs of $282,000, $18,000 could be avoided if the French Carpet was dropped, $96,000 if the Meditrainian Carpet was dropped and

''Of the total fixed costs of $282,000, $18,000 could be avoided if the French Carpet was dropped, $96,000 if the Meditrainian Carpet was dropped and $60,000 if the Welsh Carpet was dropped. The remaining fixed costs are common and are unavoidable unless the company went out of business.''

What does this information tell us? $18,000 could be avoided if the French Carpet was dropped so the fixed cost fot Meditrainian Carpet and Welsh Carpet is $264,000 , then what?

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