The management of Freshwater Corporation is considering dropping product C11B. Data from the company's accounting system appear below: Sales $928,000 Variable expenses $408,000 Fixed manufacturing expenses $342,000 Fixed selling and administrative expenses $249,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $210,000 of the fixed manufacturing expenses and $121,000 of the fixed selling and administrative expenses are avoidable if product C11B is discontinued. What would be the effect on the company's overall net operating income if product C11B were dropped?

Tl & co. is following a related-linked diversification strategy, and soar inc. is following a related-constrained diversification strategy. how do the two firms differ from each other? a. soar inc. generates 70 percent of its revenues from its primary business, while tl & co. generates only 10 percent of its revenues from its primary business. b. soar inc. pursues a backward diversification strategy, while tl & co. pursues a forward diversification strategy. c. tl & co. will share fewer common competencies and resources between its various businesses when compared to soar inc. d. tl & co. pursues a differentiation strategy, and soar inc. pursues a cost-leadership strategy, to gain a competitive advantage.