Answer Happy

The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales $ 798,900 Variable expenses $ 415,100 Fixed manufacturing expenses $ 271,600 Fixed selling and administrative expenses $ 231,800 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $192,000 of the fixed manufacturing expenses and $166,400 of the fixed selling and administrative expenses are avoidable if product B900 is discontinued. Required: What would be the financial advantage (disadvantage) of dropping 890D? Should the product be dropped? Net operating income (lon) would by it product bood were dropped. Therefore, the product dropped