4

• $(48000)

• $46000

• $(46000)

• $(17000)

Wellco Corporation is concerned about the losses reported for its product V8 and is considering discontinuing it. Data related to this product for last year appears below: Sales Variable Expenses Contribution Margin Fixed Manufacturing Expenses Fixed Selling and Administrative Expenses Operating Income $ 160,000 80,000 $ 80,000 95,000 31,000 $(46000) Further investigation has revealed that $47,500 of the fixed manufacturing expenses and $15,500 of the fixed selling and administrative expenses are avoidable if product V8 is discontinued. What is the financial advantage (disadvantage) of dropping product V8