Following are sales and other operating data for the three products made and sold by Marine Enterprises: Marine Enterprises Product A B Total Sales Manufacturing costs: Fixed $155,000 $89,700 $249,600 $494,300 Variable $13,500 $32,000 $29,500 $75,000 110,000 34,400 133,500 277,900 Selling and administrative expenses: Fixed Variable Total costs 5,500 2,440 42,700 5,100 10,000 58,200 5,300 12,840 Net income (loss) $131,440 $114,200 $178,300 $423,940 $23,560 ($24,500) $71,300 $70,360 In view of the net loss shown for Product B, company management is considering dropping that product. All variable costs are direct costs and would be eliminated if Product B were dropped; all fixed costs are indirect costs and would not be eliminated. Assume that the space used to produce Product B would be left idle. Would you recommend the elimination of Product B? Give supporting computations. Select an answer Product B Expected change in revenue Expected change in VOH Expected change in Sell & Admin. Expected change in Operating Income Would you recommend the elimination of Product B? Give supporting computations. Select an answer Select an answer Yes. Stop producing Product B since the net income loss is smaller by not producting Product B. No. Keep producing Product B since the net income loss is smaller than it would be if Product B was dropped.