(Click the icon to Thompson 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 Ahas higher variable costs and Product B has higher fixed costs Management is considering dropping Product B because that product line has an operating loss 9. 10. If fixed costs If 50% of Prod Why or why no (Click the icon to view the income statement.) 9. If fixed costs cannot be avoided, should Thompson drop Product B? Why or why not? 10. If 50% of Product B's fixed costs are avoidable, should Thompson drop Product B? Why or why not? Thompson Company Income Statement Month Ended June 30, 2018 Total Product A Product B et Sales Revenue $ 160,000 $ 80,000 80,000 $ 66,800 132,000 65,200 ariable Costs contribution Margin 13,200 14,800 28,000 35,000 3,500 31,500 Fixed Costs $ (7,000) $ 9,700 $ (16,700) Dperating Income/(Loss) . If fixed costs cannot be avoided should Thompson drop Product B? Why or why not? (Use a minus sign or parenti Expected decrease in revenue Expected decrease in total variable costs Expected increasel(decrease) in operating income Thompson drop Product B because operating income will 10. If 50% of Product B's fixed costs are avoidable, should Thompson 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 Expected increasel decrease) in operating income ang McCollum drop Product B because operating income will (Click the icon to view the in Thompson 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 Ahas higher variable costs and Product B has higher fixed costs. 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