Vulcan Swimsuit Company is considering dropping its line of women's beach robber.

A recent

product income statement for the robe line follows:

Revenue: $950,760

Cost of Goods Sold: 861,840

Gross Margin: 88,920

Selling and Admin Exp: 136,800

Net Loss: (47,880)

A factory overhead account for 35 percent of the cost of goods sold and is one-third fixed.

These data are believed to reflect conditions in the immediate future.

Required:

Should the line be dropped?