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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
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 $794,600 $ 412,900 $ 270,200 $ 230,600 13.021 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $191,000 of the fixed manufacturing expenses and $165,500 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 by product 8900 were dropped. Therefore, the product dropped
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