V. Discount Drug Company has three major product lines: drugs, cosmetics, and housewares. The company provides the following sales and cost information for the month of May for the total store and for cach total line. DRUGS COSMETICS HOUSWARES TOTAL 4,300 700 3.600 2.600 700 500 1-400 1.000 3,000 300 2.700 700 200 100 400 2,000 700 300 100 600 300 200 OTHER FIXED COSTS 100 600 100 500 1,300 200 100 1,000 SALES VARIABLE EXPENSES CONTIBUTION MARGIN FIXED COSTS SALARIES -ADVERTISING (200) (800) NET INCOME The salaries represent wages paid to employees engaged directly in each product line area. The advertising represents direct advertising costs of each individual product line and is avoidable. Other fixed costs, which are all committed costs, will continue and will be apportioned to the remaining lines. Required a. Which product lines should Discount Drug drop? b. If, as the only other variable, Discount could rent the Cosmetic and Drugs areas for S150, (Neither can be rented individually), which product lines should Discount Drug drop? c. If the Discount Drug could rent the drugs and cosmetic line's space for $300 each, what would be the most profitable choice