TB Problem Qu. 12-175 The management of Wengel Corporation ... The management of Wengel Corporation...
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Accounting
TB Problem Qu. 12-175 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 Fixed manufacturing expenses Fixed selling and administrative expenses $782,100 $ 406, 400 $266,000 $227,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $188,000 of the fixed manufacturing expenses and $162,900 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? Net operating income (loss) would if product B9OD were dropped. Therefore, the product dropped
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