Question: A study has been conducted to determine if Product A should be dropped. Sales of the product total $257,000 per year; variable expenses total $179,900

A study has been conducted to determine if Product A should be dropped. Sales of the product total $257,000 per year; variable expenses total $179,900 per year. Fixed expenses charged to the product total $115,650 per year. The company estimates that $51,400 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:

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