Hasselhoff Camera Is Considering Eliminating Model EOS1 from Its Camera

question 91

Essay

Hasselhoff Camera is considering eliminating Model EOS1 from its camera line because of losses over the past quarter.The past three months of information for model EOS1 is summarized below:
$\begin{array}{lr}\text { Sales (1,000 units) } & \$ 250,000 \\\text { Manufacturing costs: } & \\\text { Direct materials } & 90,000 \\\text { Direct labor ( } \$ 15 \text { per hour) } & 80,000 \\\text { Support } & 100,000 \\\text { Operating loss } & (\$ 20,000)\end{array}$ Support costs are 70% variable and the remaining 30% is depreciation of special equipment for model EOS1 that has no resale value.
Should Hasselhoff Camera eliminate Model EOS1 from its product line? Why or why not?

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Definitions:

Globalization

The process of interaction and integration among people, companies, and governments worldwide, leading to increased interconnectedness and interdependence.