The management of Thews Corporation is considering droppingproduct E28I. Data fr

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The management of Thews Corporation is considering droppingproduct E28I. Data from the companys accounting system appearbelow.Sales $480000Variable Expenses $202000Fixed Manufacturing Expenses $158000Fixed Selling and Administrative Expenses $130000All fixed expenses of the company are fully allocated to productsin the companys accounting system. Further investigation hasrevealed that $86000 of the fixed manufacturing expenses and$67000 of the fixed selling and administrative expenses areavoidable if product E28I is discontinued.Required:i. What is the net operating income earned by product E28Iaccording to the companys accounting system? Show your work!ii. What would be the effect on the companys overall net operatingincome of dropping product E28I? Should the product be dropped?Show your work!

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