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A study has been conducted to determine if Product A should be dropped.Sales of the product total $200,000 per year;variable expenses total $140,000 per year.Fixed expenses charged to the product total $90,000 per year.The company estimates that $40,000 of these fixed expenses will continue even if the product is dropped.These data indicate that if Product A is dropped,the company's overall net operating income would:
Conditions
Specific requirements, terms, or circumstances that define how something is to be done or what must happen.
Cessation
The act of stopping or discontinuing a process, operation, or activity.
Control
The authority to guide and manage the operations, policies, or practices of an organization or process, often held by a management team or an executive role within a company.
Capacity
The maximum level of output that a company can sustain to produce goods or services under normal working conditions.
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