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The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing expenses Fixed

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The management of Wengel Corporation is considering dropping product B90D. 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 B90D is discontinued. Required: 1. What would be the financial advantage (disadvantage) of dropping B90D? The financial advantage (disadvantage) is $ 24,800 2. Should B90D be dropped? Yes

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