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The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting systern appe below: All fixed expenses of the company are
The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting systern appe below: All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $196,000 of the fixed manufacturing expenses and $169,900 of the fixed selling and administrative expenses are avoidable if product B900 is discontinued. Required: What would be the increase (decrease) to income of dropping B90D? Should the product be dropped
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