Business, 21.05.2020 04:59 PBWaffles4864

The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales $ 794,600 Variable expenses $ 412,900 Fixed manufacturing expenses $ 270,200 Fixed selling and administrative expenses $ 230,600 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $191,000 of the fixed manufacturing expenses and $165,500 of the fixed selling and administrative expenses are avoidable if product B90D is discontinued. Required: What would be the financial advantage (disadvantage) of dropping B90D? Should the product be dropped?

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The management of Wengel Corporation is considering dropping product B90D. Data from the company's a...

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