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The management of Helder Corporatlon ls conslderlng dropplng product H58S. Data from the company's accounting system appear below: Sales $910,000 $387000 Variable expenses $369.000 Fixed
The management of Helder Corporatlon ls conslderlng dropplng product H58S. Data from the company's accounting system appear below: Sales $910,000 $387000 Variable expenses $369.000 Fixed manufacturing expenses FIxed selling and administrative expenses $249,000 In the companys account ng system all fixed expenses of the company are fully allocated to products. Further Investigation has revealed that $231,000 of the fixed manufacturing expenses and $192,000 of the fixed selling and administrative expenses are avoldable if product H58S Is discontinued. What would be the effect on the company's overall net operating Income If product H58s were dropped? O overall net operating income would decrease by $95.000. O Overall net operating income would increase by $100,000 O Overall net operating income would increase by $95,000 o overall net operating income would decrease by $100,000
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