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Question McCollum Company manufactures two products

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Question McCollum 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.) 9. 10. If fixed costs cannot be avoided, should McCollum drop Product B? Why ar why not? If 50% of Product B's fixed costs are avaidable, should McCollum drop Product B? Why or why not? 9. If fixed costs cannot be avoided, should McCollum 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 McCollum drop Product B because operating income will 10. If 50% of Product B's foxed costs are avoidable, should McCollum 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 decrease in fixed costs Data Table - X Expected decrease in total costs Expected increasel decrease) in operating income McCollum Company Income Statement McCollum drop Product B because operating income will Month Ended June 30, 2018 Total Product A Products 5 150,000 $ 75000 $ 75.000 90.000 55,000 35,000 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs 20,000 40,000 60.000 50.000 5.COD 45,000 S 10,000 $ 15,000 $ (5,000) Operating Income/Loss) Print Done
Test: Test chapters 20 21 25 This Question: 5 pts 1 2 of 20 (1 complete) McCollum 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 incc 9. 10. If fixed costs cannot be a If 50% of Product B's fixed 9. If fixed costs cannot be avoided, should McCollum 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 McCollum drop Product B because operating income will 10.14 50% of Product B's fixed costs are avoidable, should McCollum di ? (Use a minus sign or parentheses to enter a decrease in profits.) decrease by $40,000 Expected decrease in revenue Expected decrease in total variable costs decrease by $5,000 increase by $40,000. Expected decrease in fixed costs Data Table increase by $5,000 Expected decrease in total costs Expected increasel decrease) in operating income McCollum drop Product B because operating income will v McCollum Company Income Statement Month Ended June 30, 2018 Total Product A S 150,000 $ 75,000 $ 90.000 55,000 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs 80,000 50,000 20,000 5.000 10,000 $ 15,000 Operating Income (Loss) Print Done Enler any number in the edit fields and then continue to the next question
9. If fixed costs cannot be avoided, should McCollum drop Product B? Why Expected decrease in revenue Expected decrease in total variable costs Expected increase/(decrease) in operating income McCollum drop Product B because operating income will 10. If 50% costs are avoidable, should McCollum drop P should e Expected Expected should not ariable costs Expected decrease in fixed costs Expected decrease in total costs Expected increasel(decrease) in operating income McCollum y drop Product because operating income will