1.2.

Accepting a special order will improve overall net operating income if the revenue from the special order exceeds: the relevant costs associated with the order. the profit earned from normal sales. the variable costs from normal sales. the variable costs associated with the order. The Sierra Company produces and sells 3,000 binoculars each month. The selling price of binoculars is $120 per unit, and variable expenses are $80 per unit. A study has been made concerning whether production of this particular binocular should be discontinued. The study shows that $87,000 of the $113,000 in monthly fixed expenses charged to the binoculars would not be avoidable even if the product is discontinued. If this product is discontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product should be $(94,000) $(87,000) $94,000 $87,000