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 $929,000 $408,500 $343,000 $250,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $210,500 of the fixed manufacturing expenses and $121,500 of the fixed selling and administrative expenses are avoidable if product D74F is discontinued. What would be the financial advantage (disadvantage) from dropping product 074F? Multiple Choice Multiple Choice $188,500 $72,500 ($72,500) ($188,500) Part U16 is used by Mcvean Corporation to make one of its products. A total of 18,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity Per Unit $3.90 $8.50 $9.00 $4.40 $2.80 $8.00 Direct materials Direct labor Variable manufacturing overhead Supervisor's salary Depreciation of special equipment Allocated general overhead 56 An outside supplier has offered to make the part and sell it to the company for $28.70 each. If this offer is accepted the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part U16 could be used to make more of one of the company's other products, generating an additional segment margin of $30,000 per year for that product The annual financial advantage (disadvantage) for the company as a result of buying part U16 from the outside supplier should be: SO Help Save & Exit used to make more of one of the company's other products, generating an additional segment margin of $30,000 per year for that product The annual financial advantage (disadvantage) for the company as a result of buying part U16 from the outside supplier should be: Submit Multiple Choice (522 200) (592.400) $30,000 ($160,200)