Data for product XY30 is presented below. The company is considering discontinuing this product. ...
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Accounting
Data for product XY30 is presented below. The company is considering discontinuing this product.
Sales
$933,000
Variable expenses
$412,000
Fixed manufacturing expenses
$347,000
Fixed selling and administrative expenses
$254,000
All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $214,000 of the fixed manufacturing expenses and $125,000 of the fixed selling and administrative expenses are avoidable if product XY30 is discontinued.
According to the company's accounting system, what is the net operating income earned by product ZY30? Include all costs in this calculationwhether relevant or not.
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