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

Sales	$550,000
VC	$325,000
Fixed manufacturing costs	$88,000
Fixed selling & administrative costs	$75,000

Investigation has revealed that $32,000 of the fixed manufacturing expenses and $28,000 of the fixed selling and administrative expenses will go away if the product is discontinued. What would be the effect on the company's overall net operating income if this product is dropped?

($ 62,000)

($122,000)

($225,000)

($165,000)