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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 Fixed manufacturing expenses
The management of Wengel Corporation is considering dropping product 890D. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $769,600 $399,900 $261,800 $ 223,400 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $185,000 of the fixed manufacturing expenses and $160,300 of the fixed selling and administrative expenses are avoidable if product 890D is discontinued. Required: What would be the financial advantage (disadvantage) of dropping 890D? Should the product be dropped? Net operating income (loss) would product B00D were dropped Therefore, the product dropped
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