The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales $736,400
Variable expenses $382,600
Fixed manufacturing expenses $250,600
Fixed selling and administrative expenses $213,800

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $177,000 of the fixed manufacturing expenses and $153,400 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?

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