What would be the effect on the company


In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $32,800 of the fixed manufacturing expenses and $18,500 of the fixed selling and administrative expenses are avoidable if product R97C is discontinued. What would be the effect on the company's overall net operating income if product R97C were dropped?

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Accounting Basics: What would be the effect on the company
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