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3. The company produces and sells three products C J P Sales 200,000 150,000 125,000 Separate (product) xed cost 60,000 35,000 40,000 Allocated Fixed Cost 35,000 40,000 25,000 Variable Cost 95,000 75, 000 50,000 The company lost its lease and must move to smaller facility. As a result, total allocated fixed costs will be reduced by 40%. However, one product must be discontinued The expected profit (loss) after the appropriate product has been discontinued is 4. The Table Top Model Corp produces three products, Tic, Tac and Toc. The owner desires to reduce production load to only one product line due to prolonged absence of production manager. Depreciation expense amounts to P600,000 annually. Other fixed operating expenses amount to P660,000 per year. The sales and variable cost data of the three products are: Tic Tac Toc Sales 6,600,000 5,300,000 10,800,000 Variable Cost 3,900,000 1, 700, 000 8,900,000 Which product must be retained and what opportunity cost of selecting such product line? . Julius International produces weekly 15,000 units of product ]I and 30,000 units of product 111 for which P800,000 common variable costs are incurred. These two products can be sold as is or processed further. Further processing of either product does not delay the production of subsequent batches of the joint products. Below are information: I I . . I ]I 111 Unlt selling price w1thout further processmg P24 P18 Unit selling price with further processing P30 P22 Total separate weekly variable costs of further processingP100,000P P90,000 To maximize Iulius' manufactuxing contribution margin, the total separate variable costs of further processing that should be incurred each week are