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1. Lusk Corporation produces and sells 20,000 units of Product X each month. The selling price of Product X is 530 per unit, and variable

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1. Lusk Corporation produces and sells 20,000 units of Product X each month. The selling price of Product X is 530 per unit, and variable expenses are $21 per unit A-study has been made concerning whether Product X should be discontinued. The study shows that$50,000 o the $250,000 in fixed expenses charged to Product X would not be avoidable even i the product was overall net operating income would: A) decrease by $70,000 per month. B) increase by $70,000 per month. C) increase by $20,000 per month. D) decrease by $20,000 per month What is the net operating income earned by product X? Show your work in the "With Product X Column. With Product X Without Product X Difference Sales Variable Expenses Contribution Margin Fixed Expenses perating lncome 130,00 Shortcut: Change in contribution margin if product X is dropped Change in fixed expenses if product X is dropped Change in net operating income if product X is dropped ?,5,4,6

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