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The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales $ 845,000 Variable expenses 3; 439,000
The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales $ 845,000 Variable expenses 3; 439,000 Fixed manufacturing expenses $ 287,000 Fixed selling and administrative expenses $ 245,000 All xed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $203,000 of the xed manufacturing expenses and $176,000 of the fixed selling and administrative expenses are avoidable if product 390D is discontinued. Required: What would be the nancial advantage (disadvantage) of dropping 390D? Should the product be dropped
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