Hackerott Camera is considering eliminating Model AE1 from its camera line because of losses over th

Hackerott Camera is considering eliminating Model AE1 from its camera line because of
losses over the past quarter. The past three months of information for model AE1 is
summarized below.
Sales (1,000 units) $250,000
Manufacturing costs:
 Direct materials 140,000
 Direct labor ($15 per hour) 30,000
 Support 100,000
Operating loss ($20,000)
Support costs are 70% variable and the remaining 30% is depreciation of special
equipment for model AE1 that has no resale value.
Should Hackerott Camera eliminate Model AE1 from its product line? Why or why
not?