Below question

Dalton corporation is analyzing product line feasibility. They allocate corporate overhead of $1,800 based on Labor dollars. The president believes he can increase corporate performance by eliminating unprofitable products.

	Product A	Product B	Product C	Product D
Net Sales	1,100	800	1,250	1,500
Direct Labor	(500)	(600)	(400)	(600)
Direct Materials	(150)	(300)	(125)	(150)

a. Prepare a Contribution Margin Income statement based on all four products and determine if any product lines should be dropped.

b. Prepare a Contribution Margin Income statement to show that what would happen if Dalton does drop a product line.

c. Does Dalton’s operational performance increase if they drop a product line?

d. Should Dalton drop their unprofitable product lines?

e. What is this an example of?