The Boeing Company manufacturers many different types of planes including the 737, 747, 767, 777, and 787. The Boeing 747 is a wide-body commercial jet airliner and cargo aircraft known for its distinctive "hump" upper deck along the forward part of the aircraft. The 747 can accommodate up to 660 passengers although it typically seats only 410 passengers in a three-class configuration. The 747-8 Intercontinental is inspired by the Boeing 787 Dreamliner and includes a sculpted ceiling, LED dynamic lighting, larger bins, and a new staircase design. In the company's 2015 annual report, Boeing reported reduced orders and demand for new freighter aircraft (747-8) and plans to reduce production rates on its 747 program.
Requirements
1. How would a company, such as Boeing, evaluate the dropping of a product?
2. What type of income statement would a company use to evaluate business decisions such as dropping a product? Why?