The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below:

Sales	$	782,100
Variable expenses	$	406,400
Fixed manufacturing expenses	$	266,000
Fixed selling and administrative expenses	$	227,000

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $188,000 of the fixed manufacturing expenses and $162,900 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 B90D?

2. Should B90D be dropped?

• Yes

• No