The management of Wengel Corporation is considering dropping product B$90$D$.$ Data from the company's accounting system appear below:

Sales $ $790,300$

Variable expenses $ $410,700$

Fixed manufacturing expenses $ $268,800$

Fixed selling and administrative expenses $ $229,400$

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $$190,000$ of the fixed manufacturing expenses and $$164,600$ of the fixed selling and administrative expenses are avoidable if product B$90$D is discontinued.

Required:

What would be the financial advantage $($disadvantage$)$ of dropping B$90$D$?$ Should the product be dropped? $-$Net operating income $($loss$)$ would decline by $$25,000$ if product B$90$D were dropped. Therefore, the product should not be dropped