Kane Manufacturing Has Three Product Lines: A,B,and C Management Is Considering Dropping Product Line C

Kane Manufacturing has three product lines: A,B,and C.The following information is available for each product line:
$\begin{array}{lr}&\underline{\text { A }} &\underline{\text { B }} &\underline{ \text { C }} &\underline{ \text { Total }}\\ \text { Sales } &\$30000&\$350000&\$155000&\$805000\\ \text { Variable costs } &\underline{100000}&\underline{110000}&\underline{105000}&\underline{315000}\\ \text {Contribution margin } &2000&240000&50000&490000\\ \text { Fixed costs} &\underline{40000}&\underline{55000}&\underline{52000}&\underline{147000}\\ \text { Net income} &\underline{\$160000}&\underline{\$185000}&\underline{\$(2000)}&\underline{\$343000}\\ \text { } &\\\end{array}$




Management is considering dropping product line C.
Required:
A. What is one qualitative factor that Kane should consider before dropping product line $\mathrm{C}$ ?
B. If it is determined that all of product line C's fixed costs are avoidable, what would be the effect on the company's overall net income if it were dropped?

C. If it is determined that none of product line C's fixed costs are avoidable, what would be the effect on the company's overall net income if it were dropped?

D. If it is determined that half of product line C's fixed costs are avoidable, what would be the effect on the company's overall net income if it were dropped?