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The management of Bee Corporation is considering dropping product H58S. Data from the company's accounting system appear below: In the company's accounting system all fixed
The management of Bee Corporation is considering dropping product H58S. 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 exist261,000 of the fixed manufacturing expenses and exist222,000 of the fixed selling and administrative expenses are avoidable if product H58S is discontinued. What would be the effect on the company's overall net operating income if product H58S were dropped? Overall net operating income would increase by exist95,000. Overall net operating income would decrease by exist95,000. Overall net operating income would increase by exist70,000. Overall net operating income would decrease by exist70,000
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