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Montgomery Company manufactures two products. Both products have the same sales price, and the volume of sales is equivalent. However, due to the difference in

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Montgomery 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. (Click the icon to view the income statement.) If fixed costs cannot be avoided, should Montgomery drop Product B? Why or why not? If 50% of Product B's fixed costs are avoidable, should Montgomery drop Product B? Why or why not? 9. If fixed costs cannot be avoided, should Montgomery 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 X Data table Montgomery Company Income Statement Month Ended June 30, 2024 Total Product A Product B Net Sales Revenue 148,000 $ 74,000 $ 74,000 60, 150 Variable Costs 127,000 66,850 Contribution Margin 21,000 7,150 13,850 34,000 3.400 30,600 Fixed Costs A (13,000) $ 3,750 $ (16,750) Operating Income/(Loss) Print Done

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