The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below:

Sales $824,300

Variable expenses $428,200

Fixed manufacturing expenses $280,000

Fixed selling and administrative expenses $239,000

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $198,000 of the fixed manufacturing expenses and $171,700 of the fixed selling and administrative expenses are avoidable if product B90D is discontinued.

Required:

1. What would be the financial advantage (disadvantage) of dropping B90D?

2. Should B90D be dropped?