(23 Jan 2014, 10:39 pm)andreos1 wrote I get what you are saying, but if those fixed costs were reduced by natural savings or other means such as streamlining, then it is possible to maintain or increase profits with the two remaining products.
So if product c (x3) is cancelled, costs can be reduced for waged staff, fuel costs are also reduced and if justified, vehicles sold.
If that was the case, then the initial 30k costs can now be 20k and the profits for products a and b maintained.
That is the exact flip side of the argument that cropped up in the lesson
