Problem 4 - Drop decision (8 points) We sell two products B $ $ 100 $ 20$ 80 160 140 20 Total 260 160 100 Sales Revenue Less V.C. C.M. Less Direct E.C. Depreciation Salaries 20 30 10 50 30 80 Segment Margin $30 ($40) ($10) A. Should product B be dropped if $10 of the salaries can be eliminated? Show what the impact would be on net income. Should Product B be dropped? B. What if salaries would be completely eliminated due to layoff? Show what the impact would be on net income. Should Product B be dropped