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Brantly Company manufactures two products. Both products have the same sales price, and the volume of sales is equivalent. However, due to the difference in
Brantly Company manufactures two products. Both products have the same sales price, and the volume of sales is equivalent. However, due to the difference in production processes, Product A has higher variable costs Product B has higher fixed costs. Management is considering dropping Product B because that product line has an operating loss. (Click the icon to view the income statement.) Data table 9. 10. If fixed costs cannot be avoided, should Brantly drop Product B? Why or why not? If 50% of Product B's fixed costs are avoidable, should Brantly drop Product B? Why or why not? Brantly Company Income Statement Month Ended June 30, 2024 9. If fixed costs cannot be avoided, should Brantly drop Product B? Why or why not? (Use a minus sign or parenth Expected decrease in revenue Expected decrease in total variable costs Expected increasel(decrease) in operating income Total Product A Product B Net Sales Revenue $ 62,500 125,000 $ 116,500 62,500 $ 59,000 57,500 Brantly V drop Product B because operating income will Variable Costs Contribution Margin 8,500 3,500 3,200 5,000 28,800 32.000 Fixed Costs $ 300 $ (23,500) $ (23,800) Operating Incomel(Loss) 10. If 50% of Product B's fixed costs are avoidable, should Brantly drop Product B? Why or why not? (Use a minus Expected decrease in revenue Expected decrease in total variable costs Expected decrease in fixed costs Expected decrease in total costs Print Done Expected increasel(decrease) in operating income Brantly Company manufactures two products. Both products have the same sales price, and the volume of sales is equivalent. However, due to the difference in production processes, Product A has higher variable costs and Product B has higher fixed costs. Management is considering dropping Product B because that product line has an operating loss. Click the icon to view the income statement.) 9. 10. If fixed costs cannot be avoided, should Brantly drop Product B? Why or why not? If 50% of Product B's fixed costs are avoidable, should Brantly drop Product B? Why or why not? Expected decrease in revenue Expected decrease in total variable costs Expected increase/(decrease) in operating income Brantly drop Product B because operating income will 10. If 50% of Product B's fixed costs are avoidable, should Brantly drop Product B? Why or why not? (Use a minus sign or parentheses to enter a decrease in profits.) Expected decrease in revenue Expected decrease in total variable costs Expected decrease in fixed costs Expected decrease in total costs Expected increasel(decrease) in operating income McCollum drop Product B because operating income will
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