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The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year 18 appear below

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The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year 18 appear below Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $ 936,000 $ 412,000 $ 350,000 $ 257,000 A fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $214.000 of the fixed manufacturing expenses and $125,000 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 ($185,000) $185.000 ($83.000)

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