There are 3 lines of production and their production cost per unit and selling price per units are given below:

Particular	A	B	C
Production (Units)	4000	2000	5000
	SAR	SAR	SAR
Material Cost	18	26	30
Wages	7	9	10
Variable Overhead	2	3	3
Fixed Overhead	5	8	9
Total Cost	32	46	52
Selling Price	40	60	61
Profit	8	14	9

The management wants to discontinue one line and gives you the assurance that production in two other lines will rise by 50%. It intends to discontinue the line which production line as it is less profitable.

You are required to Calculate of profit from different production arrangement:

[1.] If product A is discontinued and the sale of product B and C are increased by 50%

[2.] If product B is discontinued and the sale of product A and C are increased by 50%.

[3.] If product C is discontinued and the sale of product A and B are increased by 50%

[4.] Do you agree to the scheme in principle? if so, do you think that the line which produces article A should be discontinued ?

[5.] Offer your comments and show necessary statements to support your decision.