Problem
Current Attempt in Progress
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?