Suire Corporation is considering dropping product D$14$E$.$ Data from the company's accounting system appear below:

Sales

Variable expenses

Fixed manufacturing expenses

Fixed selling and administrative expenses

$$670,000$

$$295,000$

$$246,000$

$$194,000$

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has

revealed that $$196,000$ of the fixed manufacturing expenses and $$111,000$ of the fixed selling and administrative expenses are

avoidable if product D$14$E is discontinued.

Required:

a$.$ According to the company's accounting system, what is the net operating income earned by product D$14$E$?$

Note: Net losses should be indicated by a minus sign.

b$.$ What would be the financial advantage $($disadvantage$)$ of dropping product D$14$E$?$ Should the product be dropped?