(Solved):Tilland Corporation is considering dropping product P33U. Data from the company’s accounting…

 

Question

Tilland Corporation is considering dropping product P33U. Data from the company’s accounting system appear below.

Sales $390,000
Variable Expenses $172,000
Fixed Manufacturing Expenses $218,000
Fixed Selling and Administrative Expenses $94,000

All fixed expenses of the company are fully allocated to products in the company’s accounting system. Further investigation has revealed that $35,000 of the fixed manufacturing expenses and $20,000 of the fixed selling

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