SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 34) Biden Company sells two items, product A and product B. The company is considering dropping product B. It is expected that sales of product A will increase by 40% as a result. Dropping product B will allow the company to cancel its monthly equipment rental costing $200 per month. The other existing equipment will be used for additional production of product A. One employee earning $500 per month can be terminated if product B production is dropped. Biden's other fixed costs are allocated and will continue regardless of the decision made. A condensed, budgeted monthly income statement with both products follows: 34) Product A Product B Total Sales $10,000 $8,000 $18,000 Direct materials 2,500 2,000 4,500 Direct labor 2,000 1,200 3,200 Equipment rental 300 2,600 2,900 Other allocated overhead 1,000 2,100 3,100 Operating income $4,200 $ 100 $4,300 Required: Prepare an incremental analysis to determine the financial effect of dropping product B