A company produces products A, B and C and the profit and loss statement for the past twelve months shows the following (in thousands) details.
The company is considering dropping Product C. If it does this, the fixed costs will remain the same except that the firm will be able to rent out excess factory space at $30 000 per annum. If other revenue and cost figures remained the same, what would be the effect on annual profit of dropping Product C?

Question

A company produces products A, B and C and the profit and loss statement for the past twelve months shows the following (in thousands) details. 
The company is considering dropping Product C. If it does this, the fixed costs will remain the same except that the firm will be able to rent out excess factory space at $30 000 per annum. If other revenue and cost figures remained the same, what would be the effect on annual profit of dropping Product C?

Quizplus · Accepted Answer

The Answer of A company produces products A, B and C and the profit and loss statement for the past twelve months shows the following (in thousands) details. 
The company is considering dropping Product C. If it does this, the fixed costs will remain the same except that the firm will be able to rent out excess factory space at $30 000 per annum. If other revenue and cost figures remained the same, what would be the effect on annual profit of dropping Product C?

A Company Produces Products A, B and C and the Profit