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21. The management of 6 points Yolanda Corporation is considering dropping the product D100. Given below is data taken from the company's accounting system in
21. The management of 6 points Yolanda Corporation is considering dropping the product D100. Given below is data taken from the company's accounting system in relation to the sales and the variable expenses associated with this product along with all the fixed expenses. All fixed expenses of the corporation are fully allocated to products. Further investigation has revealed that $34,000 of the fixed manufacturing expenses and $20,000 of the fixed selling and administrative expenses are avoidable if the product D100 is discontinued. What is the effect on the corporation's overall net operating income if the product D100 is dropped? * Item: Amount Sales Variable Expenses Fixed Manufacturing Expenses Fixed Selling and Administrative Expenses $130,000 $56,000 $49,000 $35,000 The overall net operating income will decrease by $10,000. The overall net operating income will increase by $10,000. The overall net operating income will decrease by $20,000. The overall net operating income will increase by $20,000. O None of the above
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