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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 $921,000
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 $921,000 $400,000 $335,000 $242,000 Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses All Tixed expenses of the company are fully allocated to products in the companys accounting system. Further investigation has revealed that $202.000 of the tixed manufacturing expenses and $113,000 of the tixed selling and administrative expenses are avoidable it product D74F Is discontinued According to the company's accounting system, what is the net operating income loss) earned by product D74F? Include all costs in this calculation-whether relevant or not Multiple Choice $521,000 $56,000 ($56,000) ($521,000)
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