Sandhill Corporation manufactures several types of accessories. For the year, the gloves and mittens line had...

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Sandhill Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $489,000, variable expenses of $367,000, and fixed expenses of $142,000. Therefore, the gloves and mittens line had a net loss of $20,000. If Sandhill eliminates the line, $34,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the gloves and mittens line. (Enter negative amounts using either a negative sign preceding the number (e.g., -45) or parentheses (e.g., (45)).) Sales Variable costs Contribution margin Fixed costs Net income/(loss) Continue Eliminate The analysis indicates that Sandhill should the gloves and mittens line. $ Increase (Decrease) Sandhill Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $489,000, variable expenses of $367,000, and fixed expenses of $142,000. Therefore, the gloves and mittens line had a net loss of $20,000. If Sandhill eliminates the line, $34,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the gloves and mittens line. (Enter negative amounts using either a negative sign preceding the number (e.g., -45) or parentheses (e.g., (45)).) Sales Variable costs Contribution margin Fixed costs Net income/(loss) Continue Eliminate The analysis indicates that Sandhill should the gloves and mittens line. $ Increase (Decrease)

Answer rating: 100% (QA)

Answer Lets prepare the analysis Before Elimination Gloves and Mittens Line Sales 489000 Variable co... View the full answer