Vulcan Swimsuit Company is considering dropping its line of womens beach robes. A recent product income statement for the robe line follows:

Revenues	$950,760
Cost of goods	861,840
Gross margin	88,920
Selling and administrative expenses	136,800
Net loss	$(47,880)

Factory overhead accounts for 35 percent of the cost of the goods sold and is one-third fixed. These data are believed to reflect conditions in the immediate future.

Required:

Should Dover accept the offer?