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The Mansfield Company manufactures and sells two lines of fishing rods. During the most recent accounting period, the Pro line and the Novice line sold

The Mansfield Company manufactures and sells two lines of fishing rods. During the most recent accounting period, the Pro line and the Novice line sold 16,800 and 3,800 units, respectively. The company's most recent financial statements are shown below:

Pro Novice
Sales $ 1,008,000 $ 456,000
Less cost of goods sold:
Unit-level production cost 672,000 256,500
Depreciation, production equipment 152,000 95,000
Gross margin $ 184,000 $ 104,500
Less operating expenses:
Unit-level selling and administrative costs 44,500 123,500
Corporate-level facility expenses (fixed) 40,320 40,320
Net income (loss) $ 99,180 $ (59,320 )

Based on this information, the company should:

Multiple Choice

Eliminate the Novice line because it is operating at a loss.

Keep the Novice line because it contributes $76,000 to total profitability.

Keep the Novice line because it contributes $104,500 to total profitability.

It is impossible to determine with the given information

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