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Saved Help Save & Exit The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for
Saved Help Save & Exit 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 Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $ 925,000 $ 406,500 $ 339,000 $ 246,000 18 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $208,500 of the fixed manufacturing expenses and $119,500 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
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