Q16. Nongshin Company manufactures various types of instant noodles and the November 2021 income statement for selected two models is presented:

	Cold Spicy	Hot Super Spicy
Net Sales Revenue	$12,600	$7,920
Cost of Goods Sold
Variable	$8,120	$5,280
Fixed	$1,650	$970
Gross Profit	$2,830	$1,670
Selling and Administrative Expenses
Variable	$3,360	$1,600
Fixed	$280	$190
Operating Income	($810)	($120)

If Nongshin drops any of these product lines, the fixed selling and administrative expenses can be avoided but none of the fixed cost of goods sold can be avoided. Which of these two products should be dropped or not?

		Nongshin should drop cold spicy noodle only.
		Nongshin should drop hot super spicy noodle only.
		Nongshin should drop both products.
		Nongshin should drop none of them.