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QUESTION 1 The management of Reacher Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing
QUESTION 1 The management of Reacher Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing expenses $759,600 $398,900 $262,800 $233,400 expenses All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $186,000 of the fixed manufacturing expenses and $155,300 of the fixed selling and administrative expenses are avoidable if product B90D is discontinued Required: Show your work 15 points Prepare a comparative format contribution margin income statement showing the net operating income to keep or drop product B90D, and the difference. What would be the financial advantage (disadvantage) of dropping B90D? Should the product be dropped? Required: Show your work 15 points Prepare a comparative format contribution margin income statement showing the net operating income to keep or drop product B90D, and the difference. What would be the financial advantage (disadvantage) of dropping B90D? Should the product be dropped
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