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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 expenses Fixed manufacturing expenses

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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 expenses Fixed manufacturing expenses Fixed selling and administrative expenses$209,00 720,00 374,000 245,00 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that S173,000 of the fixed manufacturing expenses and S150,000 of the fixed selling and administrative expenses are avoidable if product B90D is discontinued Required: What would be the financial advantage (disadvantage) of dropping B90D? Should the product be dropped? Show your work

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