Question: Please show your work TB Problem Qu. 13-175 (Algo) The management of Wengel Corporation... The management of Wengel Corporation is considering dropping product B90D. Data
TB Problem Qu. 13-175 (Algo) 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 Variable expenses $ 736,400 $ 382,600 $ 250,600 Fixed manufacturing expenses Fixed selling and administrative expenses $ 213,800 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $177,000 of the fixed manufacturing expenses and $153,400 of the fixed selling and administrative expenses are avoidable if product 890D is discontinued. Required: What would be the financial advantage (disadvantage) of dropping B90D? Should the product be dropped? Net operating income (loss) would by f product B900 were dropped Therefore, the product
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