ca! UCIU Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $120,000 $64.000 $38,000 $30,000 5:35 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. Required: What would be the effect on the company's overall net operating Income If product S48) were dropped? Should the product be dropped? Effect on the company's overall net operating income $7,000 Decrease Decrease Increase Yes NO