the management of san corperation is considering dropping product B90D. Data from the company accounting system appears below;
sales. $ f728,200
variable expenses $378,300
fixed manufacturing exp. $247,800
fixed selling & admin exp. $211,400
all fixed expenses of the company are fully allocated to product in the company accounting system. further investigation has revealed that $175,000 of the fixed manufacturing expenses and $ 151,700 of the fixed selling and administrative expenses are avoidable if B90D is discontinued
Required:
what would be the increased( decrease) to income of dropping B9OD? should the product be dropped?
I) net operating income (loss) would be ______ by _______ if product B90D were dropped. therefore, the product is __________