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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 $840,700 9436,000 $285,500 $243,800 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $202,000 of the fixed manufacturing expenses and $175,100 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 890D? The trancal dvantage (disadvantagelis 2. Should B90D be dropped? Yes No

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