1) If avoidable fixed costs would exceed the lost contribution margin, profits would increase if a product line were dropped. True False 2) company manufactures and sells several products. One of the products has fixed costs totalling $50,000 and a contribution margin of $60,000. If the product were dropped, $30,000 of fixed costs would continue unchanged. As a result of dropping the product, the company's net operating income would: A) Increase by $40,000 B) Decrease by $40.000 C) Increase b $30.000 D) Decrease by $30,000