Bryce Baseballs manufactures baseballs, baseball bats, and baseball gloves. The company is thinking of dropping baseball gloves as a product line. The following report was prepared by the accounting department:

Required:
1. Should the baseball glove line be dropped? Why or why not?
2. Interpretive Question: What qualitative factors should be considered in deciding whether to drop the baseball gloveline?

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Baseball Baseball Baseballs Bats Total Gloves Sales revenues Variable costs. Contribution margin Direct fxed costs Segment margin Indirect fixed costs Net income S 25,000 (12,000) $ 13,000 (13,500) S (500) (2,500) $ (3,000) S105,000 (185,000) S 55,000 (20,000) $ 35,000 (17,500) S 17,500 (267,000) $ 103,000 (43,500) $ 59,500 (30,000) $ 29,500 S 35,000 (10,000) S 25,000 (10,000) $ 15,000