Bailey corporation manufactures and sells a number of products, including product g. results for last year for the manufacture and sale of product g are as follows: sales $750,000 less expenses: variable production costs $450,000 sales commissions 110,000 salary of product manager 95,000 fixed product advertising 80,000 fixed manufacturing overhead 70,000 805,000 net operating loss ($55,000) assume that dropping product g would result in a $40,000 increase in the contribution margin of other product lines. if bailey chooses to drop product g, then the change in net operating income next year due to this action will be a: bailey is trying to decide whether or not to discontinue the manufacture and sale of product g. all expenses other than fixed manufacturing overhead are avoidable if the product is dropped. none of the fixed manufacturing overhead is avoidable. by dropping g and increasing the contribution margin of other products will cause an increase of $25,000