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A study has been conducted to determine if Product A should be dropped. Sales of the product total $224,000 per year; variable expenses total $156,800
A study has been conducted to determine if Product A should be dropped. Sales of the product total $224,000 per year; variable expenses total $156,800 per year. Fixed expenses charged to the product total $100,800 per year. The company estimates that $44,800 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:
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