Fallowing are sales and other operating data for the three products, A, B, and C, produced and sold by Sanger Company: B C Sales $300,000 $150,000 $100,000 Manufacturing costs: Fixed $30,000 $10,000 $30,000 Variable $140,000 $110,000 $50,000 Total manufacturing $170,000 $120,000 $80,000 costs Selling and administrative costs: Fixed Variable $10,000 $10,000 $6,000 $20,000 $10,000 $15,000 $30,000 $20,000 $21,000 Total selling and admin costs Total costs Net income (loss) $200,000 $140,000 $101,000 $100,000 $10,000 $ (1,000) In view of the net loss for Product C, Sanger's management is considering dropping that product. All variable costs are direct costs and would be eliminated if Product C were dropped. Fixed costs are all considered indirect costs, and no fixed costs would be eliminated if Product C were dropped. Assume that the space used to produce Product C would be left idle. A. Prepare a comparative income statement showing the total net income for the firm both with and without Product C. B. Prepare a brief analysis of just the relevant revenues and costs pertaining to just Product C. C. Would you recommend the elimination of Product C? Sanger Company Income Statement With Products A, B, &C With Only Products A&B Sales Manufacturing costs: Fixed Variable Total manufacturing costs Selling and administrative costs: Fixed Variable Total selling and admin costs Total costs Net income Sanger Company Relevant Revenues and Costs for Just Product C Relevant revenues for product C Relevant costs for product C: Variable mnaufacturing costs Variable selling & admin costs Total relevant costs Relevant contribution margin for C