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The management of Woznick Corporation has been concerned for sorne time with the tinancial porformaace...

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Accounting

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The management of Woznick Corporation has been concerned for sorne time with the tinancial porformaace of ats product v86O and has considered ciscontinuing is on soveral occasions Dala from the company's accounting systemi for this product for last year appear below In the compenys accounting system all foed expenses of the company are fully allocated to products. Further investggation hos feveoled that 530 ocoe of the fixed manufacturing expenses and $13000 of the foved seiling and administrative expenses are avoidable if product V860 is dscontinued What would be the tinanclal advantage (disadwantage) from dropping prodoct v860? Mutrove Cheoce ( 835000 ) (\$5,000) 535000

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