The management of Schmader Corporation is considering dropping product M12C. Data from the company's accounting system appear below: Sales ...... Variable expenses. Fixed manufacturing expenses.. Fixed selling and administrative expenses...... $550,000 $242,000 $215,000 $132,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $ 137,000 of the fixed manufacturing expenses and $79,000 of the fixed selling and administrative expenses are avoidable if product MI2C is discontinued. Required: What would be the effect on the company's overall net operating income of dropping product M12C? Should the product be dropped? Show your work