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The management of Woznick Corporation has been concerned for some time with the financial performance of its product V860 and has considered discontinuing it on

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The management of Woznick Corporation has been concerned for some time with the financial performance of its product V860 and has considered discontinuing it on several occasions. 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 $ 150,000 $ 72,000 $ 50,000 $ 33,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $30,000 of the fixed manufacturing expenses and $13,000 of the fixed selling and administrative expenses are avoidable if product V860 is discontinued. What would be the financial advantage (disadvantage) from dropping product V860? Multiple Choice ($35,000) ($5,000) $35,000 $5,000

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