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The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for the product for last year appe below
The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for the product for last year appe below Sales Variable expenses Fixed manufacturing expenses $ 929,000 $ 408,000 $343,000 Fixed selling and administrative expenses $ 250,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $210.000 of the feed manufacturing expenses and $121,000 of the fixed selling and administrative expenses are avoidable if product 074F is discontinued According to the company's accounting system, what is the net operating income (loss) earned by product D74F? Include all costs in this calculation-whether relevant or not. Multiple Choice O ($521,000) $72,000
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