Analyze the discontinuation of Product C by comparing contribution margins and profits under current and revised scenarios.

Question 1: Discontinuation of Product C

To determine whether to discontinue Product C, we will compare the total contribution margin and profit under the current scenario with the scenario where Product C is discontinued and the production of Products A and B is doubled. We assume that the "Total" column represents the selling price per unit, the "Variable" column represents the total variable cost per unit, and the "Fixed" column represents the avoidable fixed overhead per unit.

Step 1: Calculate Contribution Margin per Unit (CMU) for each product.
Contribution Margin per Unit = Selling Price per Unit - Variable Cost per Unit.

• For Product A: CMU_A = N16 - N8 = N8
• For Product B: CMU_B = N