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The management of a corporation is considering dropping product C2. Data from the company's accounting...

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Accounting

The management of a corporation is considering dropping product C2. Data from the company's accounting system appear below:
Sales
$720,000
$374,000
$245,000
$,209,000
Variable expenses
Fixed manufacturing expenses
Fixed selling and administrative expenses
All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $175,000 of the fixed manufacturing expenses and $160,000 of the fixed selling and administrative expenses are avoidable if product C2 is discontinued.
What would be the financial advantage (disadvantage) of dropping C2? Should the product be dropped?
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