Lusk company produces and sells 16100 units of product x


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

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Financial Accounting: Lusk company produces and sells 16100 units of product x
Reference No:- TGS01072605

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