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Lusk Corporation 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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Lusk Corporation 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: A. Decrease by $70,000 per month. B. Increase by $70,000 per month. C. Increase by $20,000 per month. D. Decrease by $20,000 per month. Weston Corporation is considering eliminating a department that has a contribution margin of $70,000 and $140,000 in fixed costs. Of the fixed costs, $100,000 cannot be avoided. The effect of eliminating this department on Weston's overall net operating income would be: A. An increase of $70,000. B. A decrease of $70,000. C. An increase of $30,000. D. A decrease of $30,000. Claris Corporation (a multi-product company) produces and sells 7,000 units of Product X each year. Each unit of Product X sells for $12 and has a contribution margin of $4. If Product X is discontinued, $19,000 of the $32,000 in fixed costs charged to Product X could be eliminated. If Product X is discontinued, the company's overall operating income would: A. Decrease by $4,000 per year B. Increase by $4,000 per year C. Decrease by $9,000 per year. D. Increase by S9,000 per year Fimbrez Corporation has provided the following data concerning an investment project that it is considering: The net present value of the project is closest to: A. $358, 484 B. $360,000 C. $(1, 516) D. $112,000

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