Assume that a company manufactures and sells a variety of products, one of which it refers to as Product A. The company is considering dropping Product A because the income statement for this product is reporting a net operating loss as shown below:

Sales $ 500,000

Variable expenses:

Variable manufacturing expenses $ 240,000

Sales commissions 75,000

Shipping 25,000

Total variable expenses 340,000

Contribution margin 160,000

Fixed expenses:

Salary of product-line manager $ 65,000

Advertising for this product 35,000

General factory overhead 25,000

Depreciation on equipment 20,000

Insurance on this products inventories 8,000

Purchasing department 15,000

Total fixed expenses 168,000

Net operating loss $ (8,000)

The general factory overhead and purchasing department expenses are common costs that the company allocates to all of its products using total sales dollars as the allocation base. The equipment used to manufacture Product A does not wear out through use and it has no resale value. What is the financial advantage (disadvantage) of dropping Product A?

Group of answer choices $(32,000) $(60,000) $(52,000) $8,000