Illustrate what would be the overall effect on the company

Reference no: EM13121525

Q. In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $33,500 of the fixed manufacturing expenses and $18,000 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?

Reference no: EM13121525

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