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this lesson is going to discuss how to analyze whether or not to add or drop a product line heres the situation were going to use to study this is color company and theyre concerned about their losses theyre looking at the blue and the red lines and theyre seeing that they uh are losing money theyre unprofitable and green is profitable and the total company all three of these added up is unprofitable so they have a problem and theyre thinking that if they get rid of blue and they get rid of red that their profits will increase by those amounts and that theyll be doing better so should they get rid of blue and red would their total profits increase by the 19,000 and the 11,6 if they ditched them its a common misconception to think that if you get rid of a product line that youre going to get rid of all the costs of that product line because some of those costs are allocated so some fixed costs are different from other fixed cost so if you go back to the prior screen for a minu