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The management of Wengel Corporation is considering dropping product 890D. Data from the company's accounting system appear below: Sales Variable expenses Pixed manufacturing expenses Fixed
The management of Wengel Corporation is considering dropping product 890D. Data from the company's accounting system appear below: Sales Variable expenses Pixed manufacturing expenses Fixed selling and administrative expenses 745,000 $387,000 253,400 $216, 200 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $179,000 of the fixed manufacturing expenses and $155,200 of the fixed selling and administrative expenses are avoidable if product B90D is discontinued. Required: What would be the financial advantage (disadvantage) of dropping 890D? Should the product be dropped? et operating income (loss) would produc: B9co were dropped. Therefore, the ropped
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