\begin{tabular}{|l||l|l|l|} \hline & Product A & Product B & Total \\ \hline sales volume (units) & 360 & 200 & 560 \\ \hline Revenue & $2,000 & $12,000 & $14,000 \\ \hline Variable costs: & & & \\ \hline \hline direct materials & $400 & $800 & $1,200 \\ \hline direct labor & $800 & $2,000 & $2,800 \\ \hline Contribution margin & $800 & $9,200 & $10,000 \\ \hline \hline Fixed costs & & & $8,400 \\ \hline Profit & & & $1,600 \\ \hline \hline \end{tabular} Should you drop product A or product B in the longterm? Why? Keep both products - both have positive contribution margin Drop product A it has 2 negative profit margin Drop product A1 it has negative contribution margin d) If you drop product A in the short term, fixed costs will: Oremain the same Odecrease by $2,400 profit will: Odecrease by $800 Oincrease by $1,600 If you drop product A in the long term, fixed costs will: Oremain the same Odecrease by $2,400 profit will: Odecrease by $800 Oincrease by $1,600 e) Allocate the fixed costs between products A and B, using the number of units as the cost driver. allocation rate =$ allocated costs for A=$ allocated costs for B=$ These allocated amounts are very different from what you got in part (a). In general, should we use the allocated costs from part (a) or from part (e)? Why