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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

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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 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 S181,000 of the fixed manufacturing expenses and $156,900 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 890D? Answer is complete but not entirely correct. The financial advantage (disadvantage) is $ 24.000 2. Should B90D be dropped? Yes No

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