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Nutall Corporation is considering dropping product N28X. Data from the company's accounting system regarding product N28X appear below: Nutall Corporation is considering dropping product N28x.

Nutall Corporation is considering dropping product N28X. Data from the company's accounting system regarding product N28X appear below:

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Nutall Corporation is considering dropping product N28x. Data from the company's accounting system regarding product N28X appear below: 600,000 $ Sales Variable expense Fixed manufacturing expenses Fixed selling and administrative expense $ 241,000 $232.000 $ 180,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $192,500 of the fixed manufacturing expenses and $107,500 of the fixed selling and administrative expenses are avoidable if product N28X is discontinued. Required: a. According to the company's accounting system, what is the net operating income or loss earned by product N28X? (Input the amount as a positive value regardless of whether there is a net operating loss or net operating income.) Net operating loss $ 63,000 X b-1.What would be the effect on the company's overall net operating income of dropping product N28X? (Input the amount as a positive value.) Net operating income would decrease by $ 95,000 Nutall Corporation is considering dropping product N28x. Data from the company's accounting system regarding product N28X appear below: 600,000 $ Sales Variable expense Fixed manufacturing expenses Fixed selling and administrative expense $ 241,000 $232.000 $ 180,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $192,500 of the fixed manufacturing expenses and $107,500 of the fixed selling and administrative expenses are avoidable if product N28X is discontinued. Required: a. According to the company's accounting system, what is the net operating income or loss earned by product N28X? (Input the amount as a positive value regardless of whether there is a net operating loss or net operating income.) Net operating loss $ 63,000 X b-1.What would be the effect on the company's overall net operating income of dropping product N28X? (Input the amount as a positive value.) Net operating income would decrease by $ 95,000 b- 2. Should the product be dropped? No Yes

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