QUESTION 10 Merchant of Tennis, Inc. has three product lines: Smash It (Product 1), Over the Net (Product 2) and What a Racquet (Product 3) as shown below. The company is considering whether or not to eliminate any of its product lines. The results from the past year are shown below. Product: Sales in units Sales Revenue Variable Costs Fured Costs 1 10,000 $1,500,000 1,000,000 ? 2 10,000 $2,000,000 2,100,000 3 20,000 $12,000,000 7,400,000 Total 40,000 $15,500,000 10,500,000 4,000,000 The fixed costs are common allocated fixed costs and are allocated based on number of units. The fixed costs will remain with the company whether any product is dropped. Identify which (if any) of the product lines should be eliminated. Product 1: Smash It Product 2: Over the Net Product 3: What a Racquet A. Keep B. Eliminate