Sales $500,000 Variable manufacturing expenses $240,000 Variable expenses: Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses: Salary of product-line manager 75,000 25,000 340,000 160,000 $ 65,000 Advertising for this product 35,000 General factory overhead 25,000 Depreciation on equipment 20,000 Insurance on this product's inventories 8,000 Purchasing department Total fixed expenses 15,000 168,000 Net operating loss $ (8,000) If Product A is dropped, the company would transfer its product-line manager to another department and discontinue a search for a new manager that the company anticipated paying a salary of $48.000. 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? Multiple Choice $8,000 O O $(49,000) $(69,000) $(29.000)