What is the profit of not dropping and ncremental profit

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Question: Company B had three division selling product A, B, and C. Details for the three is as follows (yearly): Sales A 450,000.00 B 950,000.00 C 250,000.00 Variable Cost 200,000.00 350,000.00 260,000.00 General Fixed Cost 800,000.00 20% of the Fixed Cost is attributable to the rent of an equipment for C. Another special equipment used for Product C had a book value of Php 50,000 (remaining useful life of 5 years) and a market value of Php 20,000. Company Bis deciding whether to drop Product C but it would decrease Product A and B sales by 10%. If you will be managing it, what is your choice (1)? What is the profit of not dropping (1) and dropping (1)? What is the incremental profit

Reference no: EM133382500

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