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The manegement of Bonga Corporation is considering dropping product D7aF. Data from the company's accounting system for this product for last year appear below. Al
The manegement of Bonga Corporation is considering dropping product D7aF. Data from the company's accounting system for this product for last year appear below. Al fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $222,000 of the fixe manufacturing expensers and $133,000 of the fixed selling and administrative expenses are avoidable if product D7AF is discontinued. According to the company's accounting system, what is the net operating income (oss) eamed by product DyaI: include all costsin this calculation- whethel relevantor not. Multiple Choice $96,000 ($521,000) ($96,000) $521,000
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