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Corvette Incorporated produces and sells 20,000 units of Product X each month. The selling price of Product X is $30 per unit, and variable expenses

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Corvette Incorporated produces and sells 20,000 units of Product X each month. The selling price of Product X is $30 per unit, and variable expenses are $21 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $50,000 of the $250,000 in fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the company's overall net operating income would: decrease by $70,000 per month increase by $20,000 per month increase by $70,000 per month decrease by $20,000 per month

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