Montgomery Company manufactures to products Both products have the same price and the volume of sales is equivalent. However de to the difference in production processes Product A has higher variable cost Click the icon to view the income statement and Product has high fived coss Management is considering dropping Product B because that product has an operating los 3. Weed cont cannot be avoided should Montgomery drop Protect B? Why why? 10.5 of Products for rent should Montgomery Product Why why not 3. fed costs cannot be avoided should Margomety do Produd Br? Why or why a minus er prentheses tortor a ornare in prott Expected decrease in reven Expecte decrease in total variable Expected increased create) in operating income Montgomery drop Protecting Income 10,8 60% of otsfond costs are voie should Montgomery drop Product Why why not? Che mineralno Expecte decrease in vene Expected decrease in total variabile che Expected dece costs Expected den total costs Banyumber in the coins and the continue to the best on 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 income McCollum drop Product B because operating income will Montgomery Company Income Statement Month Ended June 30, 2018 Total Product A Product B Net Sales Revenue $ 130,000 $ 118,250 65,000 $ 59,250 65,000 59,000 Variable Costs Contribution Margin 5.750 6,000 11,750 21,000 Fixed Costs 2.100 18.900 S Operating Income/(Loss) (9,250) $ 3,650 $ (12,900)