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1 The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below Sales Variable Fixed manufacturing expenses
1 The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below Sales Variable Fixed manufacturing expenses Fixed selling and administrative expenses $761,400 1395,600 $ 259,000 $221,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $183,000 of the fixed manufacturing expenses and $158,600 of the fixed selling and administrative expenses are avoidable if product 890D is discontinued. Required: What would be the financial advantage (disadvantage) of dropping 8900? Should the product be dropped? Net operating income (loss) would if product 8900 were dropped. Therefore, the product dropped
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