Answer:
The financial disadvantage is -$ 197,000
Explanation:
Sales $ 920,000
Variable expenses $ 386,000
Fixed manufacturing expenses $ 368,000
Fixed selling and administrative expenses $ 248,000
wtih Product L07E is eliminated
Unfavorable Fixed Manufacturing Expense = 368,000 - 229,000
= $139000
Unfavorable Fixed Selling and Administrative Expense = 248,000 - 190,000
=$58000
so the final disadvantage of eliminating product L07E = -139000-58000
-$ 197,000