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	$	925,000
Variable expenses	$	406,500
Fixed manufacturing expenses	$	339,000
Fixed selling and administrative expenses	$	246,000

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?

Multiple Choice

• $190,500

• $66,500

• ($66,500)

• ($190,500)

Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your intermediate calculations to 2 decimal places.)

rev: 10_22_2018_QC_CS-144430

Multiple Choice

• $75.44 per minute

• $39.12 per unit

• $10.03 per minute

• $13.07 per unit