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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 $ 728,200 Pixed selling and administrative expenses i $ 378,300 $247,800 $211,400 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $175,000 of the fixed manufacturing expenses and $151,700 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 dedine by if product B900 were dropped. Therefore, the product should be dropped The management of Wengel Corporation is considering dropping product B90D. Data from the company's ac below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $ 728,200 $ 378,300 $ 247,800 $ 211,400 All fixed expenses of the company are fully allocated to products in the company's accounting system. Furthe revealed that $175,000 of the fixed manufacturing expenses and $151,700 of the fixed selling and administrat avoidable if product B90D is discontinued. Required: What would be the financial advantage (disadvantage) of dropping B90D? Should the product be dropped? Net operating income (loss) would decline by f product B90D were dropped. Therefore, the product
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