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A study has been conducted to determine if Product A should be dropped. Sales of the product total $200,000 per year; variable expenses total $140,000
A study has been conducted to determine if Product A should be dropped. Sales of the product total $200,000 per year; variable expenses total $140,000 per year. Fixed expenses charged to the product total $90,000 per year. The company estimates that $40,000 of these fixed expenses can be avoided if the product is dropped. if Product A is dropped, the company's overall net operating income would: Select one: O a. decrease by $20,000 per year O b. decrease by $10,000 per year O c. increase by $10,000 per year O d. increase by $20,000 per year
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