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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 Fixed
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 $ 753,200 $391,300 $256,200 $ 218,600 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $181,000 of the fixed manufacturing expenses and $156,900 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? Net operating income (loss) would by if product B90D were dropped. Therefore, the product dropped
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