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Help is appreciated. The management of Wengel Corporation is considering dropping product 890D. Data from the company's accounting system appear below: Sales Variable expenses Fixed

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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 $824,300 $428,200 $280,000 $239,000 Allfixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $198,000 of the fixed manufacturing expenses and $171700 of the fixed selling and administrative expenses are avoidable if product B90D is discontinued. Required: 1. What would be the financial advantage (disadvantage) of dropping 890D? The financial advantage (disadvantage) is 2. Should B90D be dropped? Yes No

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