1 If the product line is dropped, the lease on the facility can be terminated and the company will be able to avoid all fixed costs except $3,000. 2  In this situation, of the $95,000 total fixed costs, $92,000 belong only to the Premium Tablet product line.3  These would be direct fixed costs of the Premium Tablets only. If the product line is dropped, the lease on the facility can be terminated and the company will be able to avoid all fixed costs except $3,000. 2  In this situation, of the $95,000 total fixed costs, $92,000 belong only to the Premium Tablet product line. 3  These would be direct fixed costs of the Premium Tablets only.
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