Your company produces 3 products. The manager is upset that Product B is making a loss of $60,0000. He wants to stop making Product B.

Product AProduct BProduct C

No of units sold4,0002,0003,000

Revenue$240,000$100,000$210,000

Variable costs $80,000$60,000$45,000

Fixed costs$100,000$100,000 $10,000

Total profit(loss)$60,000 -$60,000 $65,000'

Required

1.State whether you agree or disagree with the manager's suggestion.

2.Present an argument supporting your decision. You must state any assumptions you are making in your argument