Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the management of wengel corporation is considerin

The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting...

90.2K

Verified Solution

Question

Accounting

image

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 by if product B90D were dropped. Therefore, the product

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Algebra
1.2K views

Evaluate 10m 4 when m 5 and n 4

Chemistry
1.2K views

whic of these interactions can be explained by hydrogen bonding. Select all that apply. HF is a weak...

Biology
1.2K views

Q1 . The authors cite the explanation of Thomas Kuhn (author of The Structure of Scientific...

General Management
1.2K views

Case-2 Farquhar Industries, Inc. Farquhar Industries, Inc., is a medium-size producer of custom metal products. The company recently...

Physics
1.2K views

A human body excretes certain material by a law similar to radioactivity The body excretes...

Basic Math
1.2K views

9 In still water Maria can paddle at the rate of 7 km h The...

Calculus
1.2K views

Solve the system of linear equations:y = 3x - 4y = -2x + 1

Accounting
1.2K views

what ethical issues arise from holding checks beyond the discount period and who are the...

Accounting
1.2K views

Question \#2: Change in Cost Structure; BE Analysis, Operating Leverage, MOS...

Accounting
1.2K views

Sunland Company owns equipment that cost $68,160 when purchased on January 1 , 2019 ....

Accounting
1.2K views

urgent answers .. please respond all questions ! Student Name:...

Accounting
1.2K views

9.)There is an inverse relationship between Ending Inventory and Cost of Goods Sold. The higher...