F(Click the icon to view the income statement) equivalent, However, due to the difference in production processes. Product A has higher variable costs and Product B has higher foed costs. Management considering dropping Product B because that product line has an operating loss 9 If fixed costs cannot be avoided, should McCollum drop Product B? Why or why not? 10 150% of Product B's fixed costs are avoidable, should McCollum drop Product B? Why or why not? X enter a decrease in profits.) . If Txed costs cannot be avoided, should McCollum drop Product B? Why or why not? (Use a minus sign parentheses i Data Table Expected decrease in revenue Expected decrease in total variable costs Expected increase/(decrease! operating income McCollum Company Income Statement McCollum should not drop Product B because operating income will decrease $40,000 Month Ended June 30, 2018 10. If 50 % of Product B's foxed costs are avoldable, should McCollum drop Product B? Why or why not? (Use a minus sign or parentheses to enter a decrease in profits) Total Product A Product B Net Sales Revenue 150,000 S 75.000 S 75,000 Expected decrease in revenue 90.000 55 000 35.000 Expected decrease in total variable costs Variable Costs 60,000 20.000 40.000 Contribution Margin Expected decrease in fixed costs 5.000 50.000 45 000 FDed Costs Expected decrease in total costs 10.000 S 15,000 S (5,000) Expected increase/(decrease) in operating income Operating Income/(Loss) ould not drop Product B because operating income will decrease by $17,500. cCollum Print Done