Marine Company has \($600,000\) in fixed costs. A product that sells for \($50\) is a candidate for being dropped from the product mix. The variable cost of the product is \($40.\) The company estimates that all of the variable costs are avoidable and 10 percent of the fixed costs are avoidable. If it continues to provide the product, sales should be 5,000 units.

Should Marine Company drop the product?