Enabled: QUIZ for Module // Chapter 6. Saved Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $ 720,000 $ 331,000 $ 255,000 $ 203,000 Hel 2 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation ha revealed that $198,500 of the fixed manufacturing expenses and $113,500 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued. Required: a. According to the company's accounting system, what is the net operating inc Note: Net losses should be indicated by a minus sign. earned by product D14E? b. What would be the financial advantage (disadvantage) of dropping product D14: Should the product be dropped? a. Net operating income (loss) b. Financial advantage (disadvantage) The product dropped Prey. 2 of 5 Next >