Question 4 Z.Marks. Gonsalvez Company has three product A, B and C. The following information is avalable: A B Sales $60 000 $38 000 $26 000 Variable costs 36 000 18 000 12 000 Contribution margin 24 000 20 000 14 000 Fixed expenses 12 000 15 000 16 000 Profit (loss) $12 000 $5 000 $(2 000) Gonsalvez Company is thinking of dropping product line C because it is reporting an operating loss. Assuming fixed costs are avoidable, if Gomsalvez Company drops product line C and does not replace it, what effect will this have on profit? What will be the overal profit of the organisation. Show Calculations and provide your justification