Anton Valve Company Produces a Mechanical Valve Used in Water

Anton Valve Company produces a mechanical valve used in water systems.Three years ago the company introduced an electronic version of the valve.Sales of the mechanical model have steadily declined,and the company will report a loss on the product this year as follows: $\begin{array}{|l|r|}\hline \text { Sales revenue } & \$ \quad 200,000 \\\hline \text { Less costs: } & \\\hline \text { Unit-level manufacturing costs } & \$ \quad 157,500 \\\hline \text { Batch-level costs } & 2,500 \\\hline \text { Product-level costs } & 5,000 \\\hline \text { Facility-level costs } & 30,000 \\\hline \text { Allocated corporate costs } & \underline { 11,500 }\\\hline \text { Total costs } & \underline { \$\quad 206,500} \\\hline \text { Net loss } & \underline { \$ \quad(6,500) }\\\hline\end{array}$ If production of the mechanical valve is discontinued,product-level costs will be eliminated but facility level and corporate costs would not be affected.
Required:
1)Prepare a quantitative analysis that indicates whether the valve should be discontinued.
2)What qualitative factors should be considered in this decision?