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The management of Your Corporation is considering dropping a product. Data from the company's accounting system appear below: Sales $100,000 VC $78,000 Fixed manufacturing costs
The management of Your Corporation is considering dropping a product. Data from the company's accounting system appear below: Sales $100,000 VC $78,000 Fixed manufacturing costs $19,000 Fixed selling and administrative costs $31,000 Investigation has revealed that $18,850 of the fixed manufacturing expenses and $10,150 of the fixed selling and administrative expenses will continue if the product is discontinued. What is the effect of this discontinuance on net operating income? O increase by $ 1,000 O decrease by $24,000 O decrease by $ 1,000 O increase by $ 7,000 O decrease by $ 7,000
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