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A study has been conducted to determine if Product A should be dropped. Sales of the product total $221,000 per year; variable expenses total $154,700
A study has been conducted to determine if Product A should be dropped. Sales of the product total $221,000 per year; variable expenses total $154,700 per year. Fixed expenses charged to the product total $99,450 per year. The company estimates that $44,200 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: Multiple Choice decrease by $11,050 per year. increase by $22,100 per year. decrease by $22,100 per year. Multiple Choice O decrease by $11,050 per year. increase by $22,100 per year. decrease by $22,100 per year. increase by $33,150 per year
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