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The management of Theus Corporation is considering dropping E281 Sales $480,000 Variable Expenses $202,000 Fixed Manufacturing Expenses $ 158,000 Fixed selling and expenses $ 130,000 All fixed expenses of the company's are fully allocated to products in the company accounting system. Further investigation has revealed that $86000 of the fixed manufacturing expenses and $67,000 of the fixed selling expense and are avoidable if product 281 is discontinued. What is the net operating income earned by E281 according to the company accounting system. What would be the effect on the company's overall net operting income of dropping. product E28 should the product be dropped?
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