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Lusk Company produces and sells 735 units of Product A each month. The selling price of Product A is $500 per unit , and variable
Lusk Company produces and sells 735 units of Product A each month. The selling price of Product A is $500 per unit , and variable expenses are $434 per unit. A study has been made concerning whether Product A should be discontinued. The study shows that $70,000 of the $100,000 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 per month would FI O a decrease by $18,510 O b. increase by $18,510 O.c decrease by $48,510 Od increase by $51,490 O e decrease by $267.500 Next page ge
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