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TB Problem Qu. 12-178 Suire Corporation is considering dropping ... Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below.

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TB Problem Qu. 12-178 Suire Corporation is considering dropping ... Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below. Variable expenses Fixed manufacturing expenses Fixed selling and administrative $720,000 $331,000 $255.000 $203,000 All foxed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $198.500 of the feed manufacturing expenses and $113,500 of the fixed selling and administrative expenses are avokable if product D14E is discontinued Required: a. According to the company's accounting system, what is the net operating income earned by product DME? (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? a b. Net operating income oss Financial tage disadvanta) 69.000 The product Shoot be Prey 30 of 30 1 Next > to search te 9 s

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