Prockets Inc. just eliminated a product that had yearly sales of $120,000, yearly variable expenses of$48,000, and yearly fixed expenses of $92,000. By dropping the product, Sprockets increased its company-wide yearly net income by$10,800. These data indicate that when Sprockets discontinued the product, it was also able to eliminate _____ of the fixed costs associated with that product.

Question:

prockets Inc. just eliminated a product that had yearly sales of $120,000, yearly variable expenses of$48,000, and yearly fixed expenses of $92,000. By dropping the product, Sprockets increased its company-wide yearly net income by$10,800. These data indicate that when Sprockets discontinued the product, it was also able to eliminate _____ of the fixed costs associated with that product.

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