Variable manufacturing expenses $ 240,000 75,000 25,000 Assume that a company manufactures and sells a variety of products, one of which it refers to as Product A. The company is considering dropping Product A because the income statement for this product is reporting a net operating loss as shown below: Sales Variable expenses: Sales commissions Shipping $ 500,000 Total variable expenses Contribution margin 340,000 160,000 Fixed expenses: Salary of product-line manager $ 65,000 Advertising for this product 35,000 General factory overhead 25,000 Depreciation on equipment 20,000 Insurance on this product's inventories 8,000 Purchasing department 15,000 Total fixed expenses Net operating loss 168,000 $ (8,000) If Product A is dropped, the company would transfer its product-line manager to another department and discontinue a search for a new manager that the company anticipated paying a salary of $50,000. The general factory overhead and purchasing department expenses are common costs that the company allocates to all of its products using total sales dollars as the allocation base. The equipment used to manufacture Product A does not wear out through use and it has no resale value. What is the financial advantage (disadvantage) of dropping Product A