The management of Innovate Corporation is considering dropping its product, liver flavored ice cream. Data...
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Accounting
The management of Innovate Corporation is considering dropping its product, liver flavored ice cream. Data from the company's accounting system appear below: Sales Price per unit $9.45 Variable expenses per unit $6.5 Units sold 100,000 Fixed manufacturing expenses $300,000 Fixed selling and administrative expenses $125,000 Further investigation has revealed that $98,000 of the fixed manufacturing expenses and $45,000 of the fixed selling and administrative expenses are avoidable if liver flavored ice cream is discontinued. What would be the effect on the company's overall net operating income if liver flavored ice cream is dropped? Note: Enter a whole number without decimals, commas, or dollar signs. If the number is negative enter a minus sign first
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