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Lusk Company produces and sells 14,700 units of Product A each month. The selling price of Product A is $29 per unit, and variable expenses

Lusk Company produces and sells 14,700 units of Product A each month. The selling price of Product A is $29 per unit, and variable expenses are $23 per unit. A study has been made concerning whether Product A should be discontinued. The study shows that $73,000 of the $102,000 in fixed expenses charged to Product A would continue even if the product was discontinued. These data indicate that if Product A is discontinued, the company's overall net operating income would:

a) increase by $13,800 per month
b) decrease by $42,800 per month
c) increase by $42,800 per month
d) decrease by $59,200 per month

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