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:

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $209,000 of the fixed manufacturing expenses and $120,000 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

$190,000

$68.000

($68,000)

($190,000)

\begin{tabular}{lr} Sales & $926,000 \\ Variable expenses & $407,000 \\ Fixed manufacturing expenses & $340,000 \\ Fixed selling and administrative expenses & $247,000 \end{tabular}