Nutall Corporation is considering dropping product N28X. Data from the company's accounting system appear below:

Sales	$	820,000
Variable expense	$	401,000
Fixed manufacturing expenses	$	265,000
Fixed selling and administrative expense	$	213,000

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $203,500 of the fixed manufacturing expenses and $118,500 of the fixed selling and administrative expenses are avoidable if product N28X is discontinued.

Required:
a.	According to the company's accounting system, what is the net operating income earned by product N28X? (Input the amount as a positive value. Omit the "$" sign in your response.)

Net operating loss or Net operating income ($)

b-1.	What would be the effect on the company's overall net operating income of dropping product N28X? (Input the amount as a positive value. Omit the "$" sign in your response.)

Net operating income would be increase or decrease by $ ?

b-2.

Should the product be dropped? yes or no