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please check my work! The management of Wengel Corporation is considering dropping product 8900. Data from the company's accounting system appeat below: Sales $ 798,900
please check my work!
The management of Wengel Corporation is considering dropping product 8900. Data from the company's accounting system appeat 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 8900? Should the product be dropped? Net operating income (loss) would decline by $ 25,400 product 890D were dropped. Therefore, the product should not be drapped Step by Step Solution
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