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Discuss the potential qualitative effects of discontinuing

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Reference no: EM13957134

Pantheon Gaming, a computer enhancement company, has three product lines: audio enhancers, video enhancers, and connection-speed accelerators. Common costs are allocated based on relative sales. A product line income statement follows:

1618_259-B-M-A-D-M (1060).png

Since the profit for accelerator devices is relatively low, the company is considering dropping this product line.

Required:

a. Determine the impact on profit of dropping accelerator products.

b. Discuss the potential qualitative effects of discontinuing the sale of accelerator products. 

Reference no: EM13957134

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