Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $498,000, variable expenses of $365,000, and fixed expenses of $144,000. Therefore, the gloves and mittens line had a net loss of $11,000. If Gator eliminates the line, $43,000 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).) Continue Eliminate Net Income Increase (Decrease) Sales $ $ $ Variable costs Contribution margin Fixed costs Net income / (Loss) $ $ $ The analysis indicates that Gator should the gloves and mittens line.

Answer rating: 100% (QA)

Here the Gator corporation wants to eliminate a line which is in loss before taking the decision the ... View the full answer