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?

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