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Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Sales 610,000 Variable expenses 246,000 Fixed manufacturing expenses 2$ 234,000
Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Sales 610,000 Variable expenses 246,000 Fixed manufacturing expenses 2$ 234,000 Fixed selling and administrative expenses 182,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $193,000 of the fixed manufacturing expenses and $108,000 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued. Required: Please complete the following table: (no decimals) According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should be indicated by a minus sign.) What would be the financial advantage (disadvantage) of dropping product D14E? (indicate an advantage as a positive or a disadvantage with a minus) Should the product be kept or dropped
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