Hansig Manufacturing Company has been producing three products: A, B, and C. Now that the plant has been shifted to an assembly-line operation, a fourth product. D, has been added. Each product has its own assembly-line operation, producing 10,000 units. Total indirect fixed costs of $\$ 23,000$ are divided proportionately, based on the space allocated to each assembly line. Other pertinent information is given below.

\begin{tabular}{|c|c|c|c|c|}

\hline & A & B & c & D \\

\hline Selling price per unit. . & $\$ 3.00$ & $\$ 2.50$ & $\$ 2.70$ & $\$ 1.50$ \\

\hline Variable cost per unit & $\$ 2.00$ & $\$ 1.80$ & $\$ 1.80$ & $\$ 1.30$ \\

\hline Number of square feet & 800 & 600 & 500 & 400 \\

\hline

\end{tabular}

1. Prepare a schedule that shows net income for each product line.

2. Would total company income increase if product $D$ were dropped? Why or why not?

3. Interpretive Question: If you could double the production of A, B, or C in place of having D, which would you choose? Why?