McCollum Company manufactures two products. Both products have the same sales price, and the volume of sales is equivalent. However, due to the difference in productionprocesses, 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. McCollum Company Income Statement Month Ended June 30, 2018 Total Product A Product B 150,000 $ Net Sales Revenue 75,000$ 75,000 90,000 55,000 35,000 Variable Costs Contribution Margin 60,000 20,000 40,000 50,000 45,000 5,000 Fixed Costs 15,000 S 10,000 $ (5,000) Operating Income/(Loss) FILL IN THE BLANKS 9. If fixed costs cannot be avoided, should McCollum 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 drop Product B because operating income will McCollum McCollum (should/ should not) drop product B because income will (decrease by $40000 / decrease by $5000 / Increase by $40000/Increase by $5000) 10. If 50% of Product B's fixed costs are avoidable, should McCollum 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 decrease in fixed costs Expected decrease in total costs Expected increase/(decrease) in operating inco McCollum drop Product B because operating income will McCollum (should/ should not) drop product B because operating income will (decrease by $17500 / decrease by $5000 / Increase by $17500 / Increase by $5000)