20.

Lusk Company produces and sells 15,700 units of Product X each month. The selling price of Product X is $27 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 $72,000 of the $107,000 in fixed expenses charged to Product X would continue even if the product was discontinued. These data indicate that if Product X is discontinued, the company's overall net operating income would:

a. decrease by $59,200 per month

b. increase by $12,800 per month

c. increase by $47,800 per month

d. decrease by $47,800 per month