Robinson 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. Robinson Company Income Statement Month Ended June 30, 2018 110,000 $55,000 S 55,000 46,500 8,500 32,400 S2,650 $(23,900) Net Sales Revenue S 95,250 14,750 36,000 48,750 Variable Costs Contribution Margin Fixed Costs 6,250 3,600 Operating Income/(oss)21250 52650 thes Print Done 9. If fixed costs cannot be avoided, should Robinson drop Product B? Why or why not? (Use a minus sign or parentheses 55000 Expected decrease in revenue Expected decrease in total variable costs Expected increase/ (decrease) in operating income Robinson should not drop Product B because operating income will increase by $8,500 10. If 50% of Product B's fixed costs are avoidable, should Robinson drop Product B? Why or why not? (Use a minus sign or p 46500 8500 in profits.) Enter any number in the edit fields and then continue to the next question 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 If fixed costs cannot be avoid ing dropping Product B because that 9 why not? If 50% of Product B's fixed co Product B? Why or why not? 10. 10.1150% of Product B's fixed costs are avoidable, should Robinson drop Product B? Why or why not? (Use a minus sign in profits.) 55000 Expected decrease in revenue Expected decrease in total variable costs Expected decrease in fixed costs Expected decrease in total costs Expected increasel(decrease) in operating income 46500 16200 (62700) (7700) McCollum should drop Product B because operating income will decrease by $7,700 Enter any number in the edit fields and then continue to the next