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The management of Your Corporation is considering dropping a product. Data from the company's accounting system appear below: Sales VC Fixed manufacturing costs $40,000 $15,000
The management of Your Corporation is considering dropping a product. Data from the company's accounting system appear below: Sales VC Fixed manufacturing costs $40,000 $15,000 $19,000 Fixed selling and administrative costs $11,000 Investigation has revealed that $11,700 of the fixed manufacturing expenses and $6,300 of the fixed selling and administrative expenses will go away if the product is discontinued. What would be the effect on the company's overall net operating income if this product is dropped? increase by $13,000 decrease by $7,000 decreased by $13,000 increase by $7,000 decreased by $25,000
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