Koo Manu Limited manufactures three products namely X, Y and Z and has the following income statement for the year ending 31st December, 2020.

	X	Y	Z	Total
Sales	340,000	260,000	200,000	800,000
Less Variable Costs	136,000	78,000	140,000	354,000
Contribution	204,000	182,000	60,000	446,000
Less Fixed Costs:
Avoidable	60,000	80,000	20,000	210,000
Unavoidable	30,000	30,000	70,000	80,000
Total cost	90,000	110,000	90,000	290,000
Profit/ (Loss)	114,000	72,000	-30,000	156,000

Required: Advise management whether Product Z should be dropped because of the losses.