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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: Sales
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 $923,000 $405,500 $337,000 $244,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $207.500 of the fixed manufacturing expenses and $118.500 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? Multiple Choice O $191.500) ($63.500)
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