Question 16 15 pts The managers of ABC Manufacturing are alarmed by their operating losses. They are considering dropping the desktop product line. The company accountants have prepared the following analysis to help make this decision. ABC Manufacturing Income Statement For the Year Ended December 31, 20XX Total $930,000 507,000 423,000 Laptop $575,000 267,000 308,000 Desktop $355,000 240,000 115,000 Sales Revenue Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Costs Operating Income (Loss) 375,000 62,000 437,000 $(14,000) 225,000 45,000 270,000 $38,000 150,000 17,000 167,000 $152.000) If the company stops selling the desktop product line, the company will be able to avoid 80% of the fixed manufacturing costs from the line and 100% of the fixed selling and administrative costs from the line. Question 1 (10 Points) Prepare a differential analysis to show whether ABC Manufacturing should drop the desktop product line. Question 2 (5 Points) Should the desktop product line be dropped? Explain your