URGENT

Arial Inc. prepared monthly operating income for the month of April below. Additional information related to the month was as follows.
	Line A	Line B	Line C
Sales	83000	125000	200000
Variable Costs	55000	86000	116000
Contribution Margin	24000	39000	84000
Direct Fixed Expenses	25000	38000	60000
Line Segment Margin	-1000	1000	24000
Allocated Fixed Expenses	5000	6000	10000
	-6000	-5000	14000
1. 75% of all direct fixed expenses are avoidable if a line is discontinued.
2. Arial allocates common fixed expenses to each line on the basis of sales dollars. Allocated fixed expenses are unavoidable.
3. The controller for the company estimated that discontinuing line A would result in a 10% increase in Line C sales, and discontinuing Line B would result in a 15% increase in Line C sales.
4. April results are representative of what a typical month for the company's operations look like.
REQUIRED
A) Calculate the net benefit or loss of discontinuing line A. Use incremental analysis (do not use an income statement).
B) Calculate the net benefit or loss of discontinuing line B. Use incremental analysis (do not use an income statement).
C) Which line should the company discontinue? Briefly explain.