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Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Suire Corporation is considering dropping product D14E. Data from the

Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below:

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Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $760,000 $351,000 $259,000 $207,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $200,500 of the fixed manufacturing expenses and $115,500 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued. Required: a. 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.) b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped? Net operating income (loss) Financial advantage (disadvantage) a. The product dropped b

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