[The following information applies to the questions displayed below.] A company produces two products. Product 1 sells for $165 and Product 2 sells for $130. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 113,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Product 1 Product 2 Direct materials $ 40 $ 24 Direct labor Variable manufacturing overhead Variable selling expenses 29 25 15 14 Traceable fixed manufacturing overhead 25 27 21 17 Common fixed expenses Total cost per unit 24 19 $154 $126 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Consider each of the following questions separately. 3. Assume the company normally produces and sells 99,000 unit of Product 2 per year. What is the financial advantage (disadvantage) of discontinuing Product 2? Financial (disadvantage)