The management of Dusknoir Corporation has been concerned for some time with the financial performance of its Product X and has considered discontinuing it on several occasions. Data from the company's accounting system appear below:

Sales	650,000
Variable Expenses	293,000
Fixed Manufacturing Expenses	221,000
Fixed Selling and Administrative Expenses	150,000

In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that 95,000 of the fixed manufacturing expenses and 85,000 of the fixed selling and administrative expenses are avoidable if ProductX is discontinued. What do you recommend?

Group of answer choices

Drop Product X, differential net operating income of 177,000

Drop Product X, differential net operating income of 14,000

Retain Product X, differential net operating income of 14,000

Retain Product X, differential net operating income of 177,000