A study has been conducted to determine if Product A should be dropped. Sales of the...

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A study has been conducted to determine if Product A should be dropped. Sales of the product total $242,000 per year, variabl

business accounting

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Answer 1

Answer #1

Increase (Decrease) in net operating income

= Avoidable fixed costs - Contribution margin lost

= (108,900-48,400)-(242,000-169,400)

= 60,500-72,600

= - 12,100

Decrease by 12,100

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Answer 2

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