Smyth Corporation is considering dropping product C78D. Data from the company's accounting system appear below:

Sales	$	803,200
Variable expenses	$	417,300
Fixed manufacturing expenses	$	273,000
Fixed selling and administrative expenses	$	233,000

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $193,000 of the fixed manufacturing expenses and $167,300 of the fixed selling and administrative expenses are avoidable if product C78D is discontinued.

Required:

What would be the financial advantage (disadvantage) of dropping C78D? Should the product be dropped?