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Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below:...

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Accounting

Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below:

Sales

$

720,000

Variable expenses

$

331,000

Fixed manufacturing expenses

$

255,000

Fixed selling and administrative expenses

$

203,000

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $198,500 of the fixed manufacturing expenses and $113,500 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued.

Required:

Please complete the following table: (no decimals)

According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should be indicated by a minus sign.)

$

What would be the financial advantage (disadvantage) of dropping product D14E? (indicate an advantage as a positive or a disadvantage with a minus)

Should the product be kept or dropped?

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