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The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales $ 840,700 Variable expenses $ 436,800
The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales $ 840,700 Variable expenses $ 436,800 Fixed manufacturing expenses $ 285,600 Fixed selling and administrative expenses $ 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: What would be the financial advantage (disadvantage) of dropping B90D? Should the product be dropped
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