TB Problem Qu$.11-152($Algo$)$ The management of Wengel Corporation...

The management of Wengel Corporation is considering dropping product B$90$D$.$ Data from the company's accounting system appear

below.

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has

revealed that $$200,000$ of the fixed manufacturing expenses and $$173,400$ of the fixed selling and administrative expenses are

avoidable if product $B90D$ is discontinued.

Requlred:

What would be the financial advantage $($disadvantage$)$ of dropping B$90$D$?$ Should the product be dropped?

Net operating income $($loss$)$ would

decline

by

by

if product B$90$D were dropped. Therefore, the product should not be