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Accounting managerial 202 management of wen gel corporation is considering dropping product The management of Wengel Corporation is considering dropping product B90D. Data from the

Accounting managerial 202 management of wen gel corporation is considering dropping product

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The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales $798, 900 Variable expenses $415 , 100 Fixed manufacturing expenses $271, 600 Fixed selling and administrative expenses $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 B90D is discontinued. Required: What would be the financial advantage (disadvantage) of dropping B90D? Should the product be dropped? Net operating income (loss) would by if product B90D were dropped. Therefore, the product dropped

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