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Please solve!!!
MC Qu. 34 The management of Heider Corporation.. The management of Heider Corporation is
considering dropping product J14V. Data from the company's accounting system appear below:
Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative
expenses $960,000 $397000 $379,000 $259,000 n the company's accounting system all fixed
expenses of the company are fully allocated to products. Further investigation has revealed that
$251,000 of the fixed manufacturing expenses and $212,000 of the fixed selling and
administrative expenses are avoidable if product J14V is discontinued. What would be the effect
on the company's overall net operating income if product J14V were dropped? Overall net
operating income would decrease by $75,000 Overall net operating income would increase by
$100,000 Overall net operating income would increase by $75,000. Overall net operating income
would decrease by $100,000.
Solution

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Please solve!!! MC Qu- 34 The management of Heider Corporation-- The m.docx

  • 1. Please solve!!! MC Qu. 34 The management of Heider Corporation.. The management of Heider Corporation is considering dropping product J14V. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $960,000 $397000 $379,000 $259,000 n the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $251,000 of the fixed manufacturing expenses and $212,000 of the fixed selling and administrative expenses are avoidable if product J14V is discontinued. What would be the effect on the company's overall net operating income if product J14V were dropped? Overall net operating income would decrease by $75,000 Overall net operating income would increase by $100,000 Overall net operating income would increase by $75,000. Overall net operating income would decrease by $100,000. Solution