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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

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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 00:27:20 Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $924,000 $ 406,000 $338,000 $245,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $208,000 of the fixed manufacturing expenses and $119,000 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 ($65,000) $65,000 $191,000 ($191,000)

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