Yavapei Company produces three products: A, B, and C. A segmented income statement, with amounts given in thousands, follows: A B C Total Sales revenue $1,800 $1,600 $210 $ 3,610 Less: Variable expenses 1,350 1,000 140 2,490 Contribution margin $ 450 $ 600 $ 70 $1,120 Less: Direct fixed expenses 150 300 80 530 Segment margin $ 300 $ 600 $(10) $ 590 Less: Common fixed expenses 340 Operating income $ 250 Direct fixed expenses include depreciation on equipment dedicated to the product lines of $20,000 for A, $120,000 for B, and $25,000 for C. None of the product line equipment can be sold, and would have to be disposed of if the product line were dropped. Required 1. What impact on profit would result from dropping Product C?

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.