(Click the icon to view the income statement.) Richardson 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. 9. 10. f fixed costs cannot be avoided, should Richardson drop Product B? Why or why not? If 50% of Product B's fixed costs are avoidable, should Richardson drop Product B? Why or why not? 9. If fixed costs cannot be avoided, should Richardson 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 i Data Table - X Expected increase/(decrease) in operating income Richardson drop Product B because operating income will 10. If 50% o >sts are avoidable, should Richardson drop Product B? Why or why not? (Use a minus sign or pard should Expected de Expected de should not Richardson Company Income Statement Month Ended June 30, 2018 Total Product Product B $ 130,000 $ 65,000 $ 65,000 118,250 59.250 59,000 ble costs Expected decrease in fixed costs Expected decrease in total costs Expected increase (decrease) in operating income Net Sales Revenue Variable Costs Contribution Margin McCollum 6,000 18,900 drop Product B because operating income will 11,750 21,000 (9,250) $ Fixed Costs 5,750 2,100 3,650 $ Operating Income/(Loss) (12,900) Print Done Enter any number in the edit fields and then continue to the next question. PF (Click the icon to view the income statement.) Richardson 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. 9. 10. If fixed costs cannot be avoided, should Richardson drop Product B? Why or why not? 1f 50% of Product B's fixed costs are avoidable, should Richardson drop Product B? Why or why not 9. If fixed costs cannot be avoided, should Richardson 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 increase/ decrease) in operating income i Data Table Richardson drop Product B because operating income will 10. If 50% of Product B's fixed costs are avoidable, should Richardsond ? (Use a minus sign or pard Expected decrease in revenue decrease by $8,000. decrease by $12,900. Richardson Company Income Statement Month Ended June 30, 2018 Total Product A Product B 130,000 $ 65,000 $ 65,000 118.250 59,250 59,000 Expected decrease in total variable costs increase by 56,000. increase by $12,900. Expected decrease in fixed costs Expected decrease in total costs Expected increase/(decrease) in operating income Net Sales Revenue Variable Costs Contribution Margin Fixed Costs McCollum drop Product B because operating income will 11,750 21,000 (9,250) $ 5,750 2,100 3,650 $ 6,000 18,900 (12,900) Operating Income/(Loss) $ Print Done Enter any number in the edit fields and then continue to the next question. (Click the icon to view the income statement.) Richardson 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. 9. 10. If fixed costs cannot be avoided, should Richardson drop Product B? Why or why not? If 50% of Product B's fixed costs are avoidable, should Richardson drop Product B? Why or why not? 9. If fixed costs cannot be avoided, should Richardson 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 * Data Table Expected increase (decrease) in operating income Richardson drop Product B because operating income will 10. If 50% of Product B's fixed costs are avoidable, should Richardson drop Product B? Why or why not? (Use a minus sign or pard Expected decrease in revenue Expected decrease in total variable costs Richardson Company Income Statement Month Ended June 30, 2018 Total Product Product B $ 130,000 S 65,000 S 65,000 118.250 59,250 59,000 Expected decrease in fixed costs Net Sales Revenue Expected decrease in total costs Expected increase(decrease) in operating income Variable Costs Contribution Margin Fixed Costs McCollum 11.750 21.000 (9,250) S 6,000 18,900 drop Product B because operating income will 5,750 2,100 3,650 $ Operating Income (Loss) 12,900) should not should Print Done Enter any ni alds and then continue to the next question. (Click the icon to view the income statement.) Richardson 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. 9. 10. If fixed costs cannot be avoided, should Richardson drop Product B? Why or why not? If 50% of Product B's fixed costs are avoidable, should Richardson drop Product B? Why or why not? 9. If fixed costs cannot be avoided, should Richardson 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 0 Data Table Expected increase/(decrease) in operating income Richardson drop Product B because operating income will 10. If 50% of Product B's fixed costs are avoidable, should Richardson drop Product B? Why or why not? (Use a minus sign or pand Richardson Company Income Statement Expected decrease in revenue Expected decrease in total variable costs Month Ended June 30, 2018 Total Product A Product B $ 130,000 $ 65,000 S 65,000 118,250 59,250 59,000 Net Sales Revenue increase by $3,450. increase by S12,900. decrease by $3,450. decrease by $12,900. Expected decrease in fixed costs Expected decrease in total costs Expected increase/(decrease) in operating income Variable Costs Contribution Margin 11,750 21,000 5,750 2,100 Fixed Costs 6,000 18,900 (12.900) McCollum drop Product B because operating income will Operating Income/(Loss) $ (9,250) $ 3,650 S Print Done Enter any number in the edit fields and then continue to the next