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Paragraph Styles 4. Little Cory Corporation is considering dropping product G410. Data from the company's accounting system appear below: Sales.... $450,000 . $185,000 Fixed manufacturing
Paragraph Styles 4. Little Cory Corporation is considering dropping product G410. Data from the company's accounting system appear below: Sales.... $450,000 . $185,000 Fixed manufacturing expenses Fixed selling and administrative expenses.. $149.000 $113,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $117,000 of the fixed manufacturing and $46,000 of the fixed selling and administrative expenses are avoidable if product G410 is discontinued. expenses Required: a According to the company's accounting system, what is the net operating income earned by product G410? b. What would be the effect on the company's overall net operating income of dropping product G410? Should the product be dropped? There is not a word length requirement for this question; however, you must show your work
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