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	$	919,000
Variable expenses	$	403,500
Fixed manufacturing expenses	$	333,000
Fixed selling and administrative expenses	$	240,000

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $205,500 of the fixed manufacturing expenses and $116,500 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?

$193,500

$57,500

($57,500)

($193,500)