[Question 3] (Dropping a product) A company produces three products for which the following operating statement has been produced. Product X Product Y Product 2 Total $ $ $ $ Sales 32 000 50 000 45 000 127 000 Total costs 36 000 38 000 34 000 108 000 Net prot/loss $4000 12 000 ll 000 19 000 Total costs comprise 2/3 variable and 1/3 xed. The directors consider that as Product X shows a loss it should be discontinued. Based on the above cost data should Product X be dropped? What other factors should be considered