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The management of Sauls Company is considering dropping product M12C. Data from the company's accounting system related to the product appear below. Sales $750,000 Variable expenses $462,000 Fixed manufacturing expenses $215,000 Fixed selling and administrative expenses $132,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $140,000 of the fixed manufacturing expenses and $42,000 of the fixed selling and administrative expenses are avoidable if product M12C is discontinued. a. Calculate the net operating income earned by the product M12C using the information from the company's accounting system by preparing a contribution margin format (CVP)income statement. (This should include ALL costs for the division/product.). 10 points Show your work and use the CVP format. b. Determine the financial advantage (disadvantage) for the company of dropping product M12C. 10 points Show your work using the CVP format and indicate whether or not the product should be dropped. HTML STREET B IYA . A . TE = = FI XXBE X X x G O E Q 1 12 p