Should sunlands drop its marker product line, Cost Accounting

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Should sunlands drop its marker product line

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Sunland's currently manufactures art supplies, including markers. The marker sales generate total contribution margin of $87,400. Due to its fixed costs, however, that product line currently shows a net operating loss of $ 10,500. If Sunland's drops markers from its product categories, it will save $77,200 in direct fixed costs associated with the marker production activities.

Should Sunland's drop its marker product line? Why or why not?

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