The Rebel Corporation is considering dropping product C3PO. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $740,000 $341,000 $257,000 $205,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $199.500 of the fixed manufacturing expenses and $114,500 of the fixed selling and administrative expenses are avoidable if product C3PO is discontinued. Required: a. According to the company's accounting system, what is the net operating income earned by product C3PO? (Net losses should be indicated by a minus sign.) b. What would be the financial advantage (disadvantage) of dropping product C3PO? Should the product be dropped? a. Net operating income (loss) Financial advantage (disadvantage) $ $ (63,000) 314,000 The product should be b. dropped