Mountain Land Inc. manufactures skis, ski boots, and ski poles for downhill skiing. The company is thinking of dropping ski poles as a product line. The following report was prepared by the accounting department:

\begin{tabular}{|c|c|c|c|c|}

\hline & Skis & \begin{tabular}{l}

Ski \\

Boots

\end{tabular} & \begin{tabular}{c}

Ski \\

Poles

\end{tabular} & Total \\

\hline Sales revenues & $\$ 480,000$ & $\$ 210,000$ & $\$ 50,000$ & $\$ 740,000$ \\

\hline Variable costs . . . . . . . . . . . . . . . . . . . & $\underline{(370,000)}$ & $(140,000)$ & $\underline{(24,000)}$ & $(534,000)$ \\

\hline Contribution margin. . . . . . . . . . . . . . . & $\$ 110,000$ & $\$ 70,000$ & $\$ 26,000$ & $\$ 206.000$ \\

\hline Direct fixed costs. . . . . . . . . . . . . . . . . . . & $(40,000)$ & $(20,000)$ & $\underline{(27,000)}$ & $(87,000)$ \\

\hline Segment margin . . . . . . . . . . . . . . . . . . . & $\$ 70,000$ & $\$ 50,000$ & $\$(1,000)$ & $\$ 119,000$ \\

\hline Indirect fixed costs. . . . . . . . . . . . . . . . . . . & $(35,000)$ & $(20,000)$ & $(5,000)$ & $(60,000)$ \\

\hline Net income & $\$ 35,000$ & $\$ 30,000$ & $\$(6,000)$ & $\$ 59,000$ \\

\hline

\end{tabular}

Required:

1. Should the ski pole line be dropped? Why or why not?

2. Interpretive Question: What qualitative factors should be considered in deciding whether to drop the ski pole line?