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The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting...

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Accounting

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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 Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $934,000 $411,000 $348,000 $255,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $213,000 of the fixed manufacturing expenses and $124,000 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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