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 Insurance on this product's inventories 8,000 Purchasing department 15,000 Total fixed expenses 360,000 Net operating loss (8,000) Product A dropped, the company would water as product line managers another department and continue factory overhead and purchaung department genes are common costs that the company allocates! A wear out through use and has no resale value What is the financial advantage advantage of dropping canew mangoer mat the comy ancipated paying a salary of $54.500 The general Volank date alocatoo ba The pment used to manufacture P Mug Cloc $1.000 sas