The management of Woznick Corporation has been concemed for some time with the financial performance ofits product V860 and has considered discontinuing it on several occasions. Data from the company's accounting system for this product forlast year is as follows: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $150,000 $72,000 $50,000 S33,000 In the company's accounting system, all fixed expenses ofthe company are fully allocated to products. Further investigation has revealed that $30,000 ofthe fixedmanufacturing expenses and $23,000 of the fixed selling and administrative expenses are avoidable if product V860 was to be discontinue 17. What is the net operating income earned by product V860 accordingto the company's accounting system? 18. Should product V860 be dropped or continued? Whatis the advantage of doing so