Kane Manufacturing has three product lines: A, B, and C. The following information is available for each product line: Management is considering dropping product line C. Required: blank by $ . Solution A. Before dropping C, Kane should consider the fact that Product C is absorbing the highest percentage of fixed cost among the three product lines. If C’s production is stopped, the other two units would have to bear the entire fixed cost which would bring down the total net income. B.Had C’s fixed cost been avoidable, the company’s overall net income would go up from 550000 to 565000, a 2.72% increase in Net income. Hence, Company’s Overall Net Income : 565000 C.If C’s fixed cost is unavoidable, the company’s overall net income would go down from 550000 to 480000, a 12.72% decrease in Net income. Company’s Overall Net Income :480000 D.If half of Product C ’s fixed cost is avoidable, the overall net income would come down to 522500, a 5% decrease in Net income. Company’s Overall Net Income : 522500 .