Lusk Corporation produces and sells 16,200 units of Product X each month. The selling price of Product X is $32 per unit, and variable expenses are $26 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $72,000 of the $112,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

Multiple Choice

• ($57,200)

• $14,800

• $54,800

• ($54,800)