D Question 14 The VR Corp. manufactures two types of VR devices. Data on sales and expenses for the past quarter follow: Sales Variable manufacturing and selling expenses VRD1 VRD2 $ $ 40,500 25,200 19,600 15,100 20,900 10,100 Contribution margin Fixed expenses: Advertising, direct 4,040 2,050 Depreciation of special equipment 800 1,560 Salaries of product-line managers 3,830 3,520 Allocated common fixed expenses 8,100 5,040 Total fixed expenses 16,770 12,170 $ Net operating income (loss) $ 4,130 (2,070) 1 pts Management is concerned about the losses shown by VRD2 and wants a recommendation as to whether or not the line should be kept or dropped. The special equipment used to produce VRD2 has no resale value or alternative use. Each product line has its own manager, and if VRD2 is dropped, the product line manager will be fired. Using this information, what recommendation will you make to management of VR Corp.? MacBook Pro O VR Corp. should keep VRD2. O VR Corp. should be indifferent between keeping and dropping VRD2. O VR Corp. should drop VRD2