Big Three Inc. makes three different products. Data concerning these products appear below:

	One	Two	Three
Sales Volume	108,000	209,000	408,000
Selling Price p/unit	$1.70	$1.90	$1.25
Variable Costs p/unit	$1.19	$0.76	$0.50

Total fixed expenses are $800,000 per year. The company has no beginning or ending work in process or finished goods inventories.

*Please show me the calculations in detail, I struggle with the math.

a. What is the corporations current operating income?

b. What is the corporations over-all break-even point in dollar sales?

c. Of the total fixed expenses of $800,000, $40,000 could be avoided if Product A is dropped, $160,000 if Product B is dropped, and $120,000 if Product C is dropped. The remaining fixed expenses of $480,000 consist of common fixed expenses such as administrative salaries and rent on the production facility that could be avoided only by going out of business entirely.

i What is the break-even point in unit sales for each product line? Ii Should any of these product lines be dropped? Explain why or why not.

iii. If the corporation sells exactly the break-even quantity of each product, what will be the overall profit of the company? Explain this result.

d. What actions do you recommend to the president of ABC to increase its profitability?