The management of Rodarmel Corporation is considering dropping product G91Q. Data from the company's accounting system appear below:

Sales		$	390,000
Variable expenses		$	172,000
Fixed manufacturing expenses		$	130,000
Fixed selling and administrative expenses		$	97,000

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $57,200 of the fixed manufacturing expenses and $40,200 of the fixed selling and administrative expenses are avoidable if product G91Q is discontinued.

Required:

a.	What is the net operating income(loss) earned by product G91Q according to the company's accounting system? (Input the amount as a positive value.)

(Click to select)Net operating incomeNet operating loss

$

b1.	What would be the effect on the company's overall net operating income of dropping product G91Q?(Input the amount as a positive value.)

Net operating income (Click to select)decreasedincreased by

$

b2.

Should the product be dropped?

	Yes
	No