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show solutions The management of Dusknoir Corporation has been concerned for some time with the financial performance of its Product K35 and has considered discontinuing

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The management of Dusknoir Corporation has been concerned for some time with the financial performance of its Product K35 and has considered discontinuing it on several occasions. Data from the company's accounting system appear below: In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that F95,000 of the fixed manufacturing expenses and 85,000 of the fixed selling and administrative expenses are avoidable if Product K35 is discontinued. What do you recommend? Retain Product K35, differential net operating income of P177,000 Drop Product K35, differential net operating income of F177,000 Retain Product K35, differential net operating income of P14,000 Drop Product K35, differential net operating income of F14,000

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