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TB MC Qu.4-91(Algo) A study has been conducted to determine... A study has...

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Accounting

TB MC Qu.4-91(Algo) A study has been conducted to determine...
A study has been conducted to determine if Product A should be dropped Sales of the product total $218,000 per year; variable expenses
total $152,600 per year. Fixed expenses charged to the product total $98,100 per year. The company estimates that $43,600 of these fixed
expenses will continue even if the product is dropped. These data indicate that if Product A is dropped, the company's overall net operating
income would:
decrease by $21,800 per year.
decrease by $10,900 per year.
increase by $21,800 per year.
increase by $32,700 per year.
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