Kappa Company is deciding whether or not to drop one of its production departments, currently reporting a $30.000 loss. The loss consists of an $80,000 contribution margin and fixed expenses of $110,000. If the department is dropped, $35,000 of the fixed expenses would be eliminated. The financial advantage (disadvantage) to Kappa of dropping the department is 0 ($ 5,000) $ 35,000 $30,000 ($45,000) Next Tota Company manufactures a component used in its main product. During the current year, the costs to produce 20,000 units of this component were $225,000.consisting of: Variable (per unit) Fixed Direct Materials $4.00 Direct Labor $2.00 Manufacturing Overhead $1.50 $75,000 $7.50 Another company has offered to manufacture the 20,000 components for lota for $12.00 each. Iflota buys the components, all variable costs and 70% of the fixed costs are avoidable and the company can also rent out the space currently used to manufacture the components for $40,000 per year. What is the financial advantage disadvantage) to lota of buying the parts? O $27,500) O ($15,000) $25,000 O $ 2.500