Top Managers of Technowares Manufacturing Are Alarmed by Their Operating $$\text{Technowares Manufacturing}\\\text{Income Statement}\\\text{For the Year Ended December 31, 20XX}\\$$

Top managers of Technowares Manufacturing are alarmed by their operating losses.They are considering dropping the desktop product line.The company accountants have prepared the following analysis to help make this decision.
$$\text{Technowares Manufacturing}\\\text{Income Statement}\\\text{For the Year Ended December 31, 20XX}\\$$
$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\begin{array}{lccc} & \text { Total } & \text { Laptop } & \text { Desktop } \\\text { Sales Revenue } & \$ 930,000 & \$ 575,000 & \$ 355,000 \\\text { Variable Costs } & \underline{507,000} & \underline{267,000} & \underline{240,000} \\\text { Contribution Margin } & 423,000 & 308,000 & 115,000\end{array}$
$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\text {Fixed Costs: }$
$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\begin{array}{lrrr}\text { Manufacturing } & 375,000 & 225,000 & 150,000 \\\text { Selling and Administrative } & \underline{62,000} & \underline{45,000} & \underline{17,000} \\\text { Total Fixed Costs } & \underline{437,000} & \underline{270,000} & \underline{167,000} \\\text { Operating Income (Loss) } & \underline{\underline{\$(14,000)}} & \underline{\underline{\$ 38,000}} & \underline{\underline{\$(52,000)}}\end{array}$
Total fixed manufacturing costs will not change if the company stops selling the desktop product line. The fixed selling and administrative costs, however, will be avoided.
Prepare a differential analysis to show whether Technowares Manufacturing should drop the desktop product line. Should the desktop product line be dropped? Explain your answer.