Morgan Wallen Enterprises produces two types of guitars, acoustic and semi-acoustic. Demand for the semi-acoustic has declined in the last several years, producing a loss for Morgan Wallen Enterprises. The company shares the following relating information.

If production of the semi-acoustic guitar is discontinued, Morgan Wallen Enterprises' product-level costs will be eliminated but facility-level and corporate costs would remain.

a. Prepare a quantitative analysis that shows the net effect on income if the product is discontinued, and indicate whether the semi-acoustic guitar should be discontinued.

b. Provide a short discussion over qualitative factors should be considered in this decision.

Morgan Wallen Enterprises produces two types of guitars, acoustic and semi-acoustic. Demand for the semi following related information