hackerott camera is considering eliminating model ae1 from its camera line because o 3836943
Hackerott Camera is considering eliminating Model AE1 from its camera line because of losses over the past quarter. The past three months of information for model AE1 is summarized below:
Sales (1,000 units)
Direct labor ($15 per hour)
Support costs are 70% variable and the remaining 30% is depreciation of special equipment for model AE1 that has no resale value.
Should Hackerott Camera eliminate Model AE1 from its product line? Why or why not?