Product ABC has been considered a drag on profits at Timberlake Corporation for some time...
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Product ABC has been considered a drag on profits at Timberlake Corporation for some time and management is considering appear below: Sales $270,000 Variable Expenses $132,000 Fixed Manufacturing Expenses $95,000 Fixed Selling and Administrative Expenses $65,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has rew selling and administrative expenses are avoidable if product ABC is discontinued. What would be the effect on the company's overe Overall net operating income would increase by $59,000 Overall net operating income would decrease by $59,000. Overall net operating income would increase by $22,000 a. b. Overall net operating income would decrease by $22,000. d. Corporation for some time and management is considering discontinuing the product altogether. Data from the company's accounting system Save Answer mpany are fully allocated to products. Further investigation has revealed that $49,000 of the fixed manufacturing expenses and $30,000 of the fixed is discontinued. What would be the effect on the company's overall net operating income il product ABC were dropped
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