Mr. Earl Pearl, accountant for Margie Knall Co., Inc., has prepared the following product-line income data:

			Product
	Total		A		B		C
Sales	$	117,000	$	51,000	$	29,000	$	37,000
Variable expenses		62,700		30,900		10,900		20,900
Contribution margin		54,300		20,100		18,100		16,100
Fixed expenses:
Rent		7,700		3,400		1,900		2,400
Depreciation		8,700		3,900		2,100		2,700
Utilities		5,890		2,900		590		2,400
Supervisors' salaries		6,890		2,400		590		3,900
Maintenance		4,080		2,400		690		990
Administrative expenses		12,700		3,900		2,900		5,900
Total fixed expenses		45,960		18,900		8,770		18,290
Net operating income	$	8,340	$	1,200	$	9,330	$	(2,190)

The following additional information is available:
	The factory rent of $1,590 assigned to Product C is avoidable if the product were dropped.
	The company's total depreciation would not be affected by dropping C.
	Eliminating Product C will reduce the monthly utility bill from $2,400 to $890.
	All supervisors' salaries are avoidable.
	If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $4,080 to $2,900.
	Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,900.

Required:
1.	Calculate the advantage or disadvantage in dropping Product C. (Input the amount as a positive value. Omit the "$" sign in your response.)

(Click to select) Disadvantage Advantage in dropping Product C

$

2.

Should the product be dropped?

	Yes
	No