The Management of Freshwater Corporation Is Considering Dropping Product C11B

Multiple Choice

The management of Freshwater Corporation is considering dropping product C11B. 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 $211,000 of the fixed manufacturing expenses and $122,000 of the fixed selling and administrative expenses are avoidable if product C11B is discontinued.
-According to the company's accounting system,what is the net operating income earned by product C11B?

A) $74,000
B) $(521,000)
C) $(74,000)
D) $521,000