Asus computers is considering eliminating model DE1 from its computer line because of loses over

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Asus computers is considering eliminating model DE1 from its computer line because of loses over the quarter. Past 3 months info is summarized:

 

Sales (1000 computers) $250 000

Manufacturing costs:

Direct materials $140 000

Direct labor ($15/h) $ 30 000

Support $100 000

Operating loss ($20 000)

 

Support costs are 70% variable and the remaining 30% is depreciation of equipment for model DE1 that has no resale value.

 

 

Should Asus eliminate model DE1 from its product line? Why or why not?

    • 11 years ago
    Asus computers is considering eliminating model DE1 from its computer line because of loses over
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