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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 appear below: 8.

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:image text in transcribed

8. 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 $926,000 $ 407,000 $340,000 $ 247,000 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? ($190,000) $68.000 ($68.000) $190,000

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