The management of Drummer Corporation is considering dropping product D84L.Data from the company's accounting system appear below: 
All fixed expenses of the company are fully allocated to products in the company's accounting system.Further investigation has revealed that $201,000 of the fixed manufacturing expenses and $156,000 of the fixed selling and administrative expenses are avoidable if product D84L is discontinued.
Required:
What would be the effect on the company's overall net operating income if product D84L were dropped? Should the product be dropped? Show your work!
Definitions:
Neurotransmitter
Chemical signal released by axon terminals of a neuron.
Endorphins
Naturally occurring peptides produced in the brain that act as neurotransmitters to reduce the perception of pain and promote feelings of pleasure.
Morphine
An opiate analgesic derived from the opium poppy used for pain relief.
Sympathetic Systems
A part of the autonomic nervous system responsible for the body's 'fight or flight' response to stressful situations.
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