The Michael Scott Paper Company manufactures five types of paper.Last year, they generated net operating income of $40,000. The following information was taken from last year's income statement segmented by type (brackets indicate a negative amount):

Bond

Coated

Ledger

Index

Tag

Contribution margin

$(2,000)

$45,000

$35,000

$50,000

$162,000

Segment margin

$(16,000)

$(5,000)

$7,000

$10,000

$94,000

Allocated common fixed expenses

$10,000

$10,000

$10,000

$10,000

$10,000

Segment margin less allocated common fixed expenses

$(26,000)

$(15,000)

$(3,000)

$0

$84,000

Michael Scott Paper Company expects similar operating results for the upcoming year. If they want to maximize its profitability in the upcoming year, which paper type(s) should theydiscontinue?

A.No papershould be discontinued

B.Bond, Coated, and Ledger

C.Bond and Coated

D.Ledger, Index, andTag