c. The Disney Corporation is considering dropping its Frozen toy due to continuing losses. Data on the toy for the past year follow: Sales of 15,000 units Variable expenses Contribution margin Fixed expenses Net operating loss $150,000 120,000 30,000 40,000 $ (10,000) If the toy were discontinued, Disney could avoid $8,000 per year in fixed costs. The remainder of the fixed costs is not avoidable. Required: Suppose that if the Frozen toy is dropped, the production and sale of other Disney toys would increase so as to generate a $16,000 increase in the contribution margin received from these other toys. If all other conditions are the same, should the company drop the Frozen toy? Justify your answers as well as show your calculations