Business, 30.12.2020 23:50 IsabelAyshi

Lusk Corporation produces and sells 15,800 units of Product X each month. The selling price of Product X is $28 per unit, and variable expenses are $22 per unit.
A study has been made concerning whether Product X should be discontinued.
The study shows that $72,000 of the $108,000 in fixed expenses charged to Product X would not be avoidable, even if the product was discontinued.
If Product X is discontinued, the company's overall net operating income would:.
a. decrease by $58,800 per month
b. Increase by $13,200 per month
c. increase by $49,200 per month
d. decrease by $49,200 per month

Answers: 2

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Lusk Corporation produces and sells 15,800 units of Product X each month. The selling price of Prod...