A Company Has Two Different Products That Sell to Separate

True/False

A company has two different products that sell to separate markets.Financial data are as follows:
$$\begin{array} { | l | r | r | r | } \hline & { \text { Product A } } & \text { Product B } &{ \text { Total } } \\\hline \text { Revenue } & \$ 15,000 & \$ 9,400 & \$ 24,400 \\\hline \text { Variable costs } & ( 8,000 ) & ( 9,500 ) & ( 17,500 ) \\\hline \text { Fixed costs (allocated) } &( 2,000 ) & \underline { ( 2,000 ) } & \underline { ( 4,000 ) } \\\hline \text { Operating income (loss) } & \$ 5,000 & \$ ( 2,100 ) & \$ 2,900 \\\hline\end{array}$$ Assume that fixed costs are all unavoidable and that dropping one product would not impact sales of the other.Because the contribution margin of Product B is negative,it should be dropped.