Jay Corp fully allocates fixed expenses to its products and had the following results for product x:

Sales 400

Variable expenses 320

Fixed manufacturing expenses 80

Fixed Selling & Admin exp 50

Operating income/loss -50

$60 of fixed manufacturing costs and $40 of fixed selling and administrative costs are avoidable if product x is discontinued. The remaining fixed manufacturing costs will not go away.

What is the financial impact of discontinuing product x?

Should Jay keep or discontinue product x?