1. The Mannix Company manufactures and sells different types of china, and one of them, the Traditional product line, is making a loss. The company's most recent financial statement of the Traditional line is shown below: Sales Less: Variable Expenses Contribution Margin Less: Fixed Expenses Segment specific Fixed Expenses Allocated Company-level Fixed Expenses Net Income (Loss) Traditional $ 200,000 (150,000) 50,000 (25,000) (26,000) $(1,000) The allocated costs to the Traditional product line represent the overall fixed costs incurred in the factory and the company, and will not be affected by the elimination of the Traditional product line. Required: Should the Company eliminate the Traditional product line? Why or why not? (NO. Eliminating the Traditional Line will decrease the Company profit by $25,000)

1. The Mannix Company manufactures and sells different types of china, and one of them, the Traditional product line, is making a loss. The company's most recent financial statement of the Traditional line is shown below: The allocated costs to the Traditional product line represent the overall fixed costs incurred in the factory and the company, and will not be affected by the elimination of the Traditional product line. Required: Should the Company eliminate the Traditional product line? Why or why not? (NO. Eliminating the Traditional Line will decrease the Company profit by \\( \\$ 25,000 \\) )