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Wengel Corporation management is considering discontinuing the B90D product. The data from the company's accounting system is shown below: Sales ps 740,700 Variable expends ps

Wengel Corporation management is considering discontinuing the B90D product. The data from the company's accounting system is shown below:

Salesps740,700
Variable expendsps384,800
Fixed manufacturing costsps252,000
Fixed selling and administrative expensesps215,000

All fixed company expenses are fully allocated to products in the company's accounting system. Further investigation has revealed that $178,000 of fixed manufacturing costs and $154,300 of fixed selling and administrative costs can be avoided if the B90D product is discontinued.

Required:

What would be the financial advantage (disadvantage) of abandoning B90D? Should the product be discarded?

Net operating income (loss) would (decrease or increase) by $____ if product B90D were discontinued. Therefore, the product (should/should not) be dropped

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