Reference no: EM132687208

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 A               Product B                 Product C
No of units sold               4,000                   2,000                      3,000
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

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

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