Companys overall net operating income

Assignment Help Financial Accounting

Reference no: EM13792251

Lusk Company produces and sells 16,100 units of Product X each month. The selling price of Product X is $31 per unit, and variable expenses are $25 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $71,000 of the $111,000 in fixed expenses charged to Product X would continue even if the product was discontinued. These data indicate that if Product X is discontinued, the company's overall net operating income would:

A) decrease by $56,600 per month

B) increase by $14,400 per month

C) increase by $54,400 per month

D) decrease by $54,400 per month

Reference no: EM13792251

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