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IS THIS RIGHT ? The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales Variable expenses

IS THIS RIGHT ? image text in transcribed
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 $753,280 $391,300 $256,200 $218,600 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $181,000 of the fixed manufacturing expenses and $156,900 of the fixed selling and administrative expenses are avoidable if product B90D is discontinued. Required: What would be the financial advantage (disadvantage) of dropping 890D? Should the product be dropped? Net operating income foss) would increase by $ 24,000) product 0900 were dropped. Therefore, the product should not be dropped

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