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

Sales	$	845,000
Variable expenses	$	439,000
Fixed manufacturing expenses	$	287,000
Fixed selling and administrative expenses	$	245,000

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $203,000 of the fixed manufacturing expenses and $176,000 of the fixed selling and administrative expenses are avoidable if product B90D is discontinued.

What would be the financial advantage (disadvantage) of dropping B90D? Should the product be dropped?

er 12 Quiz 0 Help Save & Exit Su TB Problem Qu. 12-175 The management of Wengel Corporation ... The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales le expenduring Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $845,000 $439,000 $287.000 35:37) histrative $245,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $203,000 of the fixed manufacturing expenses and $176,000 of the fixed selling and administrative expenses are avoidable if product B90D is discontinued Required: What would be the financial advantage (disadvantage) of dropping 890D? Should the product be dropped? if product B900 were dropped. Therefore, the product dropped