Aggie Football Corporation is considering dropping product PUNT.
The corporation provides you with the following data for
Fixed selling and administrative
Aggie fully allocates all company fixed expenses to products in
the company’s accounting system. In addition, examination of
Aggie’s books revealed that $125,000 of the fixed selling and
administrative expenses and $214,000 of the fixed manufacturing
expenses are avoidable if product PUNT is
According to Aggie’s accounting system, what is the net
operating income earned by product PUNT?