Finance Assignment | Professional Writing

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 $935,000 $411,500 $349,000 $256,000 All fixed expenses of the company are fully allocated to products in the company’s accounting system.

Further investigation has revealed that $213,500 of the fixed manufacturing expenses and $124.500 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? Multiple Choice O $81,500 $185,500 administrative expenses are avoidable if product D74F is discontinued. What would be the financial advantage (disadvantage) from dropping product D74F?, Ο Ο Ο $185,500 Ο ($81,500) Ο O ($185,500)

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