Great Wall Ltd has two products. Information about these products is as follows:

	Abang	Adik
Units produced and sold	100	400
Selling price per unit	$400	$200
Variable expenses per unit	$260	$70

The company's fixed costs totaled $80,000, of which $20,000 can be avoided if Abang is dropped and $40,000 can be avoided if Adik is dropped.

The company’s total profits, if Abang is dropped, would be:

A profit of $12,000

A profit of $8,000

A loss of $8,000

A loss of $12,000

Answer rating: 100% (QA)

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