LMN Company's custom-made furniture division generated $1 million in sales last year, but it incurred a cost of goods sold of $800,000, resulting in a gross profit of $200,000. The division also incurred operating expenses of $350,000, resulting in an operating loss of $150,000. The mass-market furniture and home dcor division generated $9 million in sales last year, with a cost of goods sold of $6.5 million, resulting in a gross profit of $2.5 million. The division incurred operating expenses of $1.5 million, resulting in an operating profit of $1 million. Based on this information, LMN Company needs to decide whether to continue operating the custom-made furniture division or to drop the segment. To make this decision, they need to consider the following factors: Financial performance: The custom-made furniture division is currently generating an operating loss of $150,000, while the mass-market furniture and home dcor division is generating an operating profit of $1 million. Sales and revenue: The custom-made furniture division accounts for 10% of LMN Company's total revenue, while the mass-market furniture and home dcor division accounts for 90% of total revenue. Market share: The custom-made furniture market in Haiti is highly competitive, with several well-established players and new entrants. LMN Company's market share has been declining, and it is unlikely that they will be able to regain their position soon. Brand reputation: LMN Company has built a reputation for producing high-quality custom-made furniture, which has helped to establish a loyal customer base. Dropping the segment could potentially harm their brand reputation and erode customer trust. Production costs: The production costs for the custom-made furniture division are high due to the use of premium materials and components. However, there may be opportunities to reduce costs by optimizing the supply chain and streamlining the production process. Strategic considerations: LMN Company has been focusing on expanding their presence in the mass-market furniture and home dcor segment, which has been a high-growth area for them. They may want to redirect their resources and investments towards this segment and other highgrowth areas.