10. A study has been conducted to determine if Product A should be dropped. Sales of the product total $215,000 per year; variable expenses total $150,500 per year. Fixed expenses charged to the product total $96,750 per year. The company estimates that $43,000 of these fixed expenses will continue even if the product is dropped. These data indicate that if Product A is dropped, the company's overall net operating income would:

9. The Camel Company produces 10,600 units of item Roto 454 annually at a total cost of $201,400.

Direct materials	$	21,200
Direct labor		58,300
Variable overhead		47,700
Fixed overhead		74,200
Total	$	201,400

The Yukon Company has offered to supply 10,600 units of Roto 454 per year for $18 per unit. If Camel accepts the offer, $4 per unit of the fixed overhead would be saved. In addition, some of Camel's facilities could be rented to a third party for $19,080 per year. At what price would Camel be indifferent to Yukon's offer?