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The Baringer Company manufactures and sells multiple products, and a manager recently noticed that one product is showing a loss and recommended discontinuing the product.

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The Baringer Company manufactures and sells multiple products, and a manager recently noticed that one product is showing a loss and recommended discontinuing the product. The information related to the product is as follows: Sales $35,000,000 Cost of Goods Sold 30,000,000 Gross Profit $5,000,000 Operating Expenses 8,500,000 Loss from Operations -$3,500,000 Assume Cost of Goods Sold is 60% fixed Assume Operating Expenses are 80% fixed Question 1: Should the product be discontinued? Question 2: What would be the effect on Net Income if the product is discontinued

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