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TB Problem Qu. 12-178 Suire Corporation is considering dropping. Sulre Corporation Is considering dropping product D14E. Data from the company's accounting system appear below sales
TB Problem Qu. 12-178 Suire Corporation is considering dropping. Sulre Corporation Is considering dropping product D14E. Data from the company's accounting system appear below sales Variable expenses Fixed Bavatscturing expenses Pixed selling and admialetrative expenaes $630-00 $265, 000 8238, 000 186,00D All fiwed expenses of the company are fully allocated to products In the company's accounting system. Further Investigation has revealed that $194,000 of the fixed manufacturing expenses and $109,000 of the fised selling and administrative expenses are avoldable W product D14E is discotinued. 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) at wou'd be the financial advantage (disadvantage) of dropping product DI4E? Should the product be dropped? Net operating inome 0oss Financial advantage (dsadvantage) b The product dropped
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