College Publishers produces three textbooks for various college campuses: Introductory Marketing, Introductory Management, and Introductory Accounting. Each book sells for $ 60. The manager of College Publishers is concerned that Introductory Marketing appears to be losing money. This is the most recent income report:

An analysis of the records reveals that printing, commissions, and shipping costs are traced directly to the product lines, while the remaining costs are allocated equally to the three product lines. Further analysis reveals the following:
1. The warehouse consists of 60,000 square feet of which 30,000 square feet are used for accounting books, 16,000 are used for management, and the remaining square feet are used to house marketing texts.
2. Depreciation 1 is depreciation on production equipment. During the past year, the production equipment operated a total of 2,500 hours, of which 1,250 hours were used to produce accounting texts, 750 hours were used for management texts, and 500 hours were used to produce marketing texts.
3. Depreciation 2, salaries, advertising, and miscellaneous costs, cannot be traced to any particular product line.

Required:

A. Prepare a product line income report.

B. Should College Publishers drop the marketing text? Why or why not?

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Marketing Management $500,000 Accounting Total Sales Less expenses $400,000 $900,000 $1,800,000 Printing Commissions Warehousing Salaries Depreciation 1 Depreciation 2 Miscellaneous Advertising Shipping 160,000 40,000 48,000 34,000 36,000 24,000 34,000 8,000 48,000 200,000 50,000 48,000 34,000 36,000 24,000 34,000 8,000 60000 6,000 360,000 90,000 48,000 34,000 36,000 24,000 34,000 8,000 108,000 $158,000 720,000 180,000 144,000 102,000 108,000 72,000 102,000 24,000 216,000 $ 132000 Net income (loss)