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The management of Furrow Corporation is considering dropping product LO7E. Data from the company's accounting...

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Accounting

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The management of Furrow Corporation is considering dropping product LO7E. Data from the company's accounting system appear below: Salcs Variable expenses Fixed manufacturing expenses Fixed selling and administrative expense $830,000 $365,000 $291,000 166,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $186,000 of the fixed manufacturing expenses and $106,000 of the fixed selling and administrative expenses are avoidable if product LOTE is discontinued. What would be the effect on the overall net operating income if product LO7E were dropped? company's Difference Variable Ex Contribution Margin Fixed Expenses: Fixed Manufacturing Expenses Net Operating Income/(Loss)

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