Bales Corporation manufactures and sells a number of products, including a product called JYMP. Results for last year for the manufacture and sale of JYMPs are as follows:. Sales $960,000
Less expenses:
Variable production costs$464,000
Sales commissions 144,000
Salary of product manager 100,000
Fixed product advertising 160,000
Fixed manufacturing overhead 132,000 1,000,000
Net operating loss $(40,000)
Bales corporation manufactures and sells a number of products, including a product called JYMP. Assune that dropping Product JYMP would result in a $90,000 increases in the contribution margin of other products Assume that dropping JYMP will have no effect on other products. The annual financial advantage(disadvantage) for the company of eliminating this product should be:.