The management of ABC Corporation is alarmed by their operating losses. They are considering dropping the B product line. The company accountants have prepared the following analysis to help make this decision. ABC Corporation Income Statement For the Year Ended December 31, 20XX Total A B Sales Revenue $930,000 $575,000 $355,000 Variable Costs 507,000 267,000 240,000 Contribution Margin 423,000 308,000 115,000 Fixed Costs: Manufacturing 375,000 225,000 150,000 Selling and Administrative 62,000 45,000 17,000 Total Fixed Costs 437,000 270,000 167,000 Operating Income (Loss) $(14,000) $38,000 $(52,000) If the company stops selling the product in line B, the company will be able to avoid 80% of the fixed manufacturing costs and 100% of the fixed selling and administrative costs. Required: 1. Prepare a differential analysis to show whether the corporation should drop the B product line. 2. Should the B product line be dropped? Explain and discuss your answ