2. Keep or drop a product line (2.5pts): The management of the Flyin' Illini T-Shirt Co. has been concerned for some time with the financial performance of its Grey t-shirt line and has considered discontinuing it on several occasions. Accounting information for the firm for last accounting period appears below: Orange Blue Grey Sales $625,020 $1,009,450 $591,325 Variable manufacturing costs $190,995 $302,675 $211,770 Fixed manufacturing costs $200,000 $250,000 $215,500 Gross Margin $234,025 $456,775 $164,055 Variable non-manufacturing costs $53,400 $71,555 $60,880 Fixed non-manufacturing costs $115,800 $202,600 $164,250 Net Operating Income (Loss) $64,825 $182,620 ($61,075) The accountant for the company estimates that $50,000 of the fixed manufacturing costs and $25,000 of the fixed non-manufacturing expenses could be avoided each accounting period if the Grey t-shirt line is discontinued. Assume all variable costs could be avoided if the Grey t-shirt line is discontinued and that dropping the Grey t-shirt line would have no effect on the other t-shirt lines. What would be the financial advantage (disadvantage) from dropping the Grey t-shirt line? You must show all of your work.