1. What career cluster might be connected to constructing a birdhouse?

A. According to the company's accounting system, what is the net operating income earned by product V86O?

B. What would be the effect on the company's overall net operating income if product V86O were dropped?

Explanation:

net operating income from product V860:

total sales $150,000

- variable expenses $72,000

- fixed manufacturing expenses $50,000

- fixed selling and administrative expenses $33,000

net loss ($5,000)

if product is dropped:

unavoidable fixed costs = ($50,000 + $33,000) - ($30,000 + $13,000) = $40,000