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The management of Parachute Corporation is considering droppingproduct ABC123. Data from the company's accounting system appearbelow:Sales$260,000Cost of goodssold125,000Building expenses88,000Selling and administrativeexpenses75,000All building expenses of the company are fully allocated toproducts in the company's accounting system. Further investigationhas revealed that $42,000 of the building expenses and $48,000 ofthe selling and administrative expenses will notbe incurred if product ABC123 is discontinued.a. According to the company's accounting system, what are theoperating profits earned by product ABC123?b. What would be the impact on the company's overall operatingprofits if product ABC123 is dropped? Should the product bedropped?