All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $117,000 of the fixed manufacturing expenses and $78,000 of the fixed selling and administrative expenses are avoidable if product AK93 is discontinued. Required: a. What is the net operating income earned by product AK93 according to the company's accounting system? Net operating income b. What would be the effect on the company's overall net operating income of dropping product AK93? ffect on the company's overall net operating income c. Should the product be dropped? Yes No All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $117,000 of the fixed manufacturing expenses and $78,000 of the fixed selling and administrative expenses are avoidable if product AK93 is discontinued. Required: a. What is the net operating income earned by product AK93 according to the company's accounting system? Net operating income b. What would be the effect on the company's overall net operating income of dropping product AK93? ffect on the company's overall net operating income c. Should the product be dropped? Yes No