.mangobl corporation is considering dropping product D14E. data from the company accounting system appears below:
sales. 740,000
variable exp. 341,000
fixed selling exp 257,00
fixed selling& admin exp. 205,00
all fucrd expenses of the company are fully allocated to profucts in the company accounting system. further investigation has revealed that 199,500 of the fixed manufacturing expenses and 114,500 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued.
Required :
i) 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)
b ) what would be thr increase (decrease) to income of dropping product D14E?should thr product br dropped?
a ) Net operating income(loss) ___________
b) financial advantage ( disadvantage) __________ the product ____________dropped
