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Lusk Corporation produces and sells 15.800 units of Product X each month. The selling price of Product X is $28 per unit, and variable expenses
Lusk Corporation produces and sells 15.800 units of Product X each month. The selling price of Product X is $28 per unit, and variable expenses are $22 per unit A study has been made concerning whether Product X should be discontinued. The study shows that $72,000 of the $108,000 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 $58,800 per month Increase by $13,200 per month increase by $49,200 per month decrease by $49,200 per month The management of Kabanuck Corporation is considering dropping product V41B. Data from the company's accounting system appear below: All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $208,000 of the fixed manufacturing expenses and $119,000 of the fixed selling and administrative expenses are avoidable if product V41B is discontinued. According to the company's accounting system, what is the net operating income earned by product V41B? Include all costs in this calculation-whether relevant or not. $68,000 $(521,000) $(68,000) $521,000
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