Q5. Baker \& Maker Limited is making three products and is reviewing the profitability of its product line. You are provided the following budget data for the followina vear: The Top Management of company is considering deletion of Product " X " from its line up and shift the capacity of 100,000 units to Product " Z ". The company has engaged you as a Consultant and you have been informed: 1. Entire production is being sold 2. 25% of the labour cost of each product is fixed in nature 3. There is fixed administrative overheads of $900,000 which needs to be apportioned to each product on the basis of units sold and is already included in the overheads costs given in the above statement of profitability. 4. Deletion of Product X would lead to elimination of the fixed labour cost associated to each product on the basis of units sold and is already included in the overheads costs given in the above statement of profitability. 4. Deletion of Product X would lead to elimination of the fixed labour cost associated with it and also reduction of 1/6th of the fixed administrative overheads that is apportioned to Product X 5. The increased product of Product " Z " would lead to decrease in the selling price by $1.50 in order to achieve the increased sales. It would also lead to doubling of the fixed labour cost of Product Z and 20% increase in the variable labour cost. Requirement: Prepare a detailed recommendation with justification to the company in terms of deleting Product X