The management of Rodarmel Corporation is considering dropping product G91Q.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 $57,000 of the fixed manufacturing expenses and $40,000 of the fixed selling and administrative expenses are avoidable if product G91Q is discontinued.
Required:
a.What is the net operating income earned by product G91Q according to the company's accounting system? Show your work!
b.What would be the effect on the company's overall net operating income of dropping product G91Q? Should the product be dropped? Show your work!
Definitions:
Preparedness
A concept in psychology that suggests organisms are innately predisposed to form certain associations or learn particular types of behaviors more easily.
Phobic Stimuli
Objects or situations that provoke an irrational and excessive fear response.
Animals
Multicellular, eukaryotic organisms in the kingdom Animalia that are capable of locomotion and responsive to their environment.
Epidemiology
The study of how often diseases occur in different groups of people and why, aimed at controlling health problems.
Q3: The net cash provided by (used in)financing
Q10: The average operating assets amounted to:<br>A)$600,000<br>B)$400,000<br>C)$500,000<br>D)$800,000
Q23: If new equipment is replacing old equipment,any
Q26: (Ignore income taxes in this problem. )Gocke
Q29: An unfavorable materials quantity variance is recorded
Q45: The present value of the annual cost
Q86: An automated turning machine is the current
Q89: If the denominator level of activity is
Q97: If the internal rate of return is
Q156: If the labor efficiency variance is unfavorable,then<br>A)actual