Q. The management of Bonga Corporation is considering dropping product D74F.

Data from the company's accounting system for this product for last year appear below:

Sales	$	928,000
Variable expenses	$	408,000
Fixed manufacturing expenses	$	342,000
Fixed selling and administrative expenses	$	249,000

Further investigation has revealed that $210,000 of the fixed manufacturing expenses

and $121,000 of the fixed selling and administrative expenses are avoidable if product D74F is discontinued.

What would be the financial advantage (disadvantage) from dropping product D74F?

Multiple Choice:

- 189,999

- 71,000

- ($71,000)

-($189,999)