Management is considering dropping product line a because


This is part B and C to the previous question. Please show all work

A: Management is considering dropping Product line A because it is unprofitable. Assuming the prior years results are typical, discuss the effect this decision would have on the profitability of the company.

B: If facilities currently used to produce product A can be subleased to another company for $200,000 per year after dropping product A with no other changes in cost, might this change your decision?

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