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The management of Calemeero Inc. is considering dropping product Y sunglasses. Data from the company's accounting system for this product for last year appear below:

The management of Calemeero Inc. is considering dropping product Y sunglasses. Data from the company's accounting system for this product for last year appear below:

Sales $830,000
Variable expenses $390,000
Fixed manufacturing expenses $266,000
Fixed selling and administrative expenses $232,000

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $111,000 of the fixed manufacturing expenses and $103,000 of the fixed selling and administrative expenses are avoidable if product Y sunglasses is discontinued.

What would be the financial advantage (disadvantage) from dropping product Y sunglasses?

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