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Swore and Bore is a computer peripheral manufacturer that specializes in input devices for home computer users. Most of the items are specifically crafted for
Swore and Bore is a computer peripheral manufacturer that specializes in input devices for home computer users. Most of the items are specifically crafted for hard-core gamers and hard-core social media commenters. As such, the keyboards and mice they produce are specially designed to withstand the rigors of 'online combat'. The company is facing a number of decisions. Details are laid out below Drop or Retain a Segment Swore and Bore has 3 mice in their product line. The VP of Operations believes that the "Rage-Clicker" mouse is performing poorly and should be discontinued. Data regarding the three mice products is below: Marketing Expenses for each of the product lines is traceable, and would not be incurred if a product line was dropped. The same is true of the Product Line Administration Salaries. The General Admin Overhead is allocated based on percentage of sales per district. Finally, the Production Equipment for each product line would have no other use and now resale value nor disposal cost. ** Required: Should the "Rage-Clicker" mouse be discontinued? To receive full credit, you must decide to keep or get rid of the segment and provide the financial analysis to support the decision. -6 Marks
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