Summer Corporation is considering dropping product D14E. Data from the company's accounting system appear below:

Sales ------------------------------------------------------ $340,000

Variable expenses ----------------------------------- $156,000

Fixed manufacturing expenses ------------------$116,000

Fixed selling and administrative expenses -- $75,000

An investigation has revealed that $72,000 of the fixed manufacturing expenses and $48,000 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued.

Required:

What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped?