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Question 9 Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales. ..................................... $753,200 Variable Expenses. $391,300 Fixed Manufacturing Expenses
Question 9 Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales. ..................................... $753,200 Variable Expenses. $391,300 Fixed Manufacturing Expenses $256,200 Fixed selling and administrative expenses............................. $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 B9OD is discontinued. Required: What would be the financial advantage (Disadvantage) of dropping B90D? Should the product be dropped? Net operating income (loss) would _ if product B90D were dropped. Therefore, the product be dropped
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