below: All fixed expenses of the company are fully allocated to products in the company's...

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Accounting

below:
All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has
revealed that $186,000 of the fixed manufacturing expenses and $161,200 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
by
if product B90D were dropped. Therefore, the product
dropped
image

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