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

			Product
	Total	A	B	C
Sales	$	93,000	$	43,000	$	24,000	$	26,000
Variable expenses		56,000		27,000		10,000		19,000
Contribution margin		37,000		16,000		14,000		7,000
Fixed expenses:
Rent		3,800		1,300		1,000		1,500
Depreciation		4,800		1,800		1,200		1,800
Utilities		3,440		1,200		740		1,500
Supervisors' salaries		4,840		1,100		740		3,000
Maintenance		2,780		1,100		840		840
Administrative expenses		8,800		1,800		2,000		5,000
Total fixed expenses		28,460		8,300		6,520		13,640
Net operating income	$	8,540	$	7,700	$	7,480	$	(6,640)

The following additional information is available:
	The factory rent of $1,500 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 $1,500 to $1,000.
	All supervisors' salaries are avoidable.
	If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $2,780 to $2,200.
	Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $1,000.

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

in dropping Product C

$

2.	Should the product be dropped?
	Yes No