I have one more question.as seen below. Can you please advise if you can answer it by 5:00 PM tonight. The question requires to show your work. Please advise if you can. If you can please complete it, I will pay an additional $9.00.
The management of Leinberger Corporation is considering dropping product S48J. Data from the company’s accounting system appear below:
All fixed expenses of the company are fully allocated to products in the company’s accounting system. Further investigation has revealed that $28,000 of the fixed manufacturing expenses and $21,000 of the fixed selling and administrative expenses are avoidable if product S48J is discontinued.
What would be the effect on the company’s overall net operating income if product S48J were dropped? Should the product be dropped? Show your work!
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