Q 7.23: Sprockets Inc. just eliminated a product that had yearly sales of $120,000, yearly variable expenses of $48,000, and yearly fixed expenses of $92,000. By dropping the product, Sprockets increased its company- wide yearly net income by $10,800. These data indicate that when Sprockets discontinued the product, it was also able to eliminateof the fixed costs associated with that product. A) 3496 B) 10% C) 90% D) 6696