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Lusk Corporation produces and sells 16,100 units of Product X each month. The selling price of Product X is $31 per unit, and variable expenses
Lusk Corporation produces and sells 16,100 units of Product X each month. The selling price of Product X is $31 per unit, and variable expenses are $25 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $71,000 of the $11,000 in foed 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 $56,600 per month Increase by $14,400 per month decrease by $54,400 per month Increase by $54,400 per month
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