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The management of Kabanuck Corporation is considering dropping product V41B. Data from the company's accounting system appear below: Sales $921,000 $404,500 Variable expenses Fixed manufacturing

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The management of Kabanuck Corporation is considering dropping product V41B. Data from the company's accounting system appear below: Sales $921,000 $404,500 Variable expenses Fixed manufacturing expenses $516,500 Fixed selling and administrative expenses $335,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $206,500 of the fixed manufacturing expenses and $117,500 of the fixed selling and administrative expenses are avoidable if product V41B is discontinued. What would be the effect on the company's overall net operating income if product V41B were dropped? Overall net operating income would increase by $192,500 Overall net operating income would decrease by $60,500. Overall net operating income would decrease by $192,500. Overall net operating income would increase by $60,500

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