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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 $ 929,000

Variable expenses

$ 408,500

Fixed manufacturing expenses $ 343,000

Fixed selling and administrative expenses $ 250,000

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $210,500 of the fixed manufacturing expenses and $121,500 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?

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