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The management of Google Corporation is considering dropping product Alpha. Data from the company's accounting system for this product for last year appear below: Sales

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The management of Google Corporation is considering dropping product Alpha. 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 $918,000 S403,000 $332,000 $239,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $205,000 of the fixed manufacturing expenses and $116,000 of the fixed selling and administrative expenses are avoidable if product Alpha is discontinued What would be the financial advantage (disadvantage) from dropping product Alpha? brow Saved Multiple Choice $56,000 $194,000 ($194,000) ($56,000)

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