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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 $100,000 $75,000 Fixed manufacturing costs
The management of Your Corporation is considering dropping a product. Data from the company's accounting system appear below: Sales VC $100,000 $75,000 Fixed manufacturing costs $19,000 Fixed selling and administrative costs $53,000 Investigation has revealed that $19,500 of the fixed manufacturing expenses and $10,500 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? increase by $17,000 decrease by $25,000 decrease by $17,000 increase by $ 5,000 decrease by $ 5,000
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