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0637 The management of Wengel Corporation is considering dropping product 890D. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing
0637 The management of Wengel Corporation is considering dropping product 890D. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses. $ 798,900 $415,100. $ 271,600 $231,800 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $192,000 of the fixed manufacturing expenses and $166,400 of the fixed selling and administrative expenses are avoidable if product 890D is discontinued. Required: What would be the financial advantage (disadvantage) of dropping 890D? Should the product be dropped? Net operating Income (loss) would decline by if product 0900 were dropped. Therefore, the product dropped
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