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The management of Leinberger Corporation is considering dropping product S48J. Data from the company's accounting system appear below: Sales Variable expensen Fixed manufacturing expenses Fixed

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The management of Leinberger Corporation is considering dropping product S48J. Data from the company's accounting system appear below: Sales Variable expensen Fixed manufacturing expenses Fixed selling and administrative expenses $120,000 $64,000 $38,000 $30,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $28,000 of the fixed manufacturing expenses and $21,000 of the fixed selling and administrative expenses are avoidable if product S48J is discontinued. Required: What would be the effect on the company's overall net operating Income if product S48) were dropped? Should the product be dropped? Effect on the company's overall net operating income Yes No

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