The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting systemfor this product for last year appear below:

Sales $ 830,000

Variable expenses $ 390,000

Fixed manufacturing expenses $ 266,000

Fixed selling and administrative expenses $ 232,000

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $111,000 of the fixed manufacturing expenses and $103,000 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

A) $226,000

B) $58,000

C) ($226,000)

D) ($58,000)