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Suppose you are a manager of company XYZ, you need to make following decisions: Production-oriented decisions 1) Keep or Drop a product line Currently, XYZ

Suppose you are a manager of company XYZ, you need to make following decisions: Production-oriented decisions 1) Keep or Drop a product line

Currently, XYZ has three divisions A, B, and C. Their financial results: A B C

Sales revenue

650,000

300,000

200,000

Expense

450,000

120,000

97,000

Contribution Margin

200,000

180,000

103,000

Fixed Expense

65,020

82000

200,000

Net Income

134,980

98,000

-97,000

The table shows Division C has negative net income. Will you drop division C? State your reasons clearly.

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