Answer:
1. decrease by $62,200 per month
Explanation:
Fixed Cost savings (FC) from discontinuing product A = $102,000 - $73,000 = $29,000
Variable Cost of 15,200 of product A:
[tex]VC = 15,200* \$16 = \$243,200[/tex]
Revenue from selling 15,200 units of product A:
[tex]R = 15,200* \$22 = \$334,400[/tex]
The change in net income is:
[tex]\Delta N=FC+VC-R\\\Delta N=\$29,000+\$243,200-\$334,400\\\Delta N=-\$62,200[/tex]
The company's overall net operating income would decrease by $62,200 per month