The management of Parachute Corporation is considering dropping product ABC123. Data from the company's accounting system appear below:

Sales	$	260,000
Cost of goods sold		125,000
Building expenses		88,000
Selling and administrative expenses		75,000

All building expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $42,000 of the building expenses and $48,000 of the selling and administrative expenses will not be incurred if product ABC123 is discontinued. a. According to the company's accounting system, what are the operating profits earned by product ABC123? b. What would be the impact on the company's overall operating profits if product ABC123 is dropped? Should the product be dropped?