The management of Wengel Corporation is considering dropping product B$90$D$.$ Data from the company's accounting system appear below:

Sales

Variable expenses

Fixed 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 B$90$D is discontinued.

Required:

What would be the financial advantage $($disadvantage$)$ of dropping B$90$D$?$ Should the product be dropped?

Net operating income $($loss$)$ would by

if product B$90$D were dropped. Therefore, the product

dropped