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Should asus eliminate model de1 from its product line

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Asus computers is considering eliminating model DE1 from its computer line because of loses over the quarter. Past 3 months info is summerised:

Sales (1000 computers) $250 000

Manufacturing costs:
Direct materials $140 000
Direct labor ($15/h) $ 30 000
Support $100 000
Operating loss ($20 000)

Support costs are 70% variable and the remaining 30% is depreciation of equipment for model DE1 that has no resale value.

Should Asus eliminate model DE1 from its product line? Why or why not?

Reference no: EM13944779

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