Harry Styles Company produces concert microphones. Several years ago Harry Styles Co. began producing an updated, cordless version of the microphone. Since then, sales of the original microphone model have steadily declined, resulting in a loss for the product. Related information is as follows:

Sales revenue

Less costs:

$ 200,000

Variable manufacturing costs

Batch-level costs

$ 157,500

Product-level costs

2,500

5,000

Facility-level costs

30,000

Allocated corporate costs

11,500

Total costs

206,500

Net loss

$ (6,500)

If production of the original concert microphone is discontinued, the Styles Company's product-level costs will be eliminated but facility-level and corporate costs would remain.

1. Prepare a quantitative analysis that indicates the net effect on income and whether the microphone should be discontinued.
2. What qualitative factors should be considered in this decision