Summit Outdoor Gear is evaluating whether to discontinue one…

Summit Outdооr Geаr is evаluаting whether tо discontinue one of its lower-margin product lines. Internal accounting reports show that the product generates only a small contribution toward fixed costs, and on a standalone basis appears barely profitable. However, recent customer analytics indicate that a significant portion of customers who purchase this product also buy higher-margin items during the same transaction. The operations manager argues that the product should be discontinued based on its weak financial performance, while the marketing manager believes it plays a strategic role in driving overall profitability. Senior management wants to ensure that the decision reflects appropriate use of managerial accounting information. Which of the following is the most appropriate conclusion?