A company has two segments, X and Y. Details about those two segments and the company as a whole are shown below:

Total Segment X Segment Y

Sales $800,000 $350,000 $450,000

Variable expenses 320,000 120,000 200,000

Contribution margin 480,000 230,000 250,000

Fixed expenses 400,000 140,000 260,000

Net operating income (loss) $80,000 $90,000 ($10,000)

20% of the fixed expenses charged to Segment Y will continue even if Segment Y is dropped. If Segment Y is dropped, Segment X's sales will increase by 7%.

Should the company discontinue Segment Y (Yes or No)? What is the financial advantage (disadvantage) of discontinuing Segment Y?