Kingston 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. If fixed costs cannot be avoided, should Kingston drop Product B? Why or why not? (Use a minus sign or parentheses to enter a decrease in profits.)

10. If 50% of Product B's fixed costs are avoidable, should Kingston drop Product B? Why or why not? (Use a minus sign or parentheses to enter a decrease in profits.)

Kingston Company Income Statement Month Ended June 30, 2024 \begin{tabular}{|c|c|c|c|c|c|} \hline 11 & & Total & & ductA & Product B \\ \hline Net Sales Revenue & $ & 148,000 & $ & 74,000 & 74,000 \\ \hline & & 127,000 & & 66,850 & 60,150 \\ \hline Contribution Margin & & 21,000 & & 7,150 & 13,850 \\ \hline Fixed Costs & & 34,000 & & 3,400 & 30,600 \\ \hline Operating Income/(Loss) & $ & (13,000) & $ & 3,750 & (16,750) \\ \hline \end{tabular} 9. If fixed costs cannot be avoided, should Kingston drop Product B? Why or why not? (Use a minus sign or par Kingston drop Product B because operating income will 10. If 50% of Product B's fixed costs are avoidable, should Kingston drop Product B? Why or why not