Lusk company produces and sells 15900 units of product a

Reference no: EM13611842

Lusk Company produces and sells 15,900 units of Product A each month.The selling price of Product A is $29 per unit, and variable expenses are $23 per unit. A study has been made concerning whether Product A should be discontinued. The study shows that $71,000 of the $109,000 in fixed expenses charged to Product A would continue even if the product was discontinued. These data indicate that if Product A is discontinued , the company's overall net operating income would: decrease by $ 57,400 per month decrease by $51,600 increase by $51,600 increase $ 13,600

Reference no: EM13611842

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