(Solved):The management of Wengel Corporation is considering dropping product B90D. Data from the…

 

Question

The management of Wengel Corporation is considering dropping product B90D. Data from the company’s accounting system appear below:

Sales $840,700

Variable expenses $436,800

Fixed manufacturing expenses $285,600

Fixed selling and administrative expense $243,800

All fixed expenses of the company are fully allocated to products in the company’s accounting system. Further investigation has revealed that $202,00O of the fixed manufacturing expenses and $175,100 of the fixed selling and administrative expenses are avoidable if

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