Lusk Corporation produces and sells 15,600 units of Product X each month. The selling price of Product X is $26 per unit, and variable expenses are $20 per unit. A study has been conducted on whether Product X should be discontinued. The study shows that $73,000 of the $106,000 in fixed monthly expenses charged to Product X would not be avoidable even if the product were discontinued. 

If Product X is discontinued, what should be the annual financial advantage (disadvantage) to the company of discontinuing this product?

Answer rating: 100% (QA)

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