Badura Bombs, Inc's CEO, that evil genius known as "The Professor," is considering eliminating the unprofitable "Shark Head Laser" from their staple of products. The Shark Head Laser currently accounts for the following revenues and costs:

Sales 350,000

Variable Costs 175,000

Fixed Dosts. 195,000

Net Loss. (20,000)

If the laser is eliminated, the fixed costs will be absorbed by Badura Bombs' remaining products. "The Professor" has no plans to introduce a new product any time soon to replace the product with something else. Should the product be eliminated? Explain your logic.

Answer rating: 100% (QA)

Answer Yes based on the financial information provided eliminating the Shark Head Laser seems like a ... View the full answer