XYZ Ltd is considering discontinuing Product A The following data is provided Item Product A ($) Total Company ($) Sales revenue 100,000 500,000 Variable costs 60,000 300,000 Fixed costs 40,000 150,000 Allocated fixed costs 10,000 50,000 Required a Calculate the contribution margin for Product A b ...

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XYZ Ltd is considering discontinuing Product A. The following data is provided: Item Product A ($) Total

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XYZ Ltd is considering discontinuing Product A. The following data is provided:

Item	Product A ($)	Total Company ($)
Sales revenue	100,000	500,000
Variable costs	60,000	300,000
Fixed costs	40,000	150,000
Allocated fixed costs	10,000	50,000

Required: a. Calculate the contribution margin for Product A. b. Determine the impact on total company profit if Product A is discontinued. c. Identify the relevant costs and benefits of discontinuing Product A. d. Provide a recommendation on whether Product A should be discontinued.