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10. Chappy manufactures two lines of slacks: Plain and Upscale. Last year, the Plain line sold 25,000 slacks and the Upscale sold 32,000 slacks. Chappy

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10. Chappy manufactures two lines of slacks: Plain and Upscale. Last year, the Plain line sold 25,000 slacks and the Upscale sold 32,000 slacks. Chappy is considering to eliminate the Plain line based on the financial statement listed below: Plain Upscale Sales $300,000 $900,000 Less: COGS Unit level 200,000 320,000 Deprecation production 80,000 120,000 equipment Gross Margin 20,000 460,000 Less: operating expenses: Unit level SG&A 16,000 130,000 Corporate (facility level fixed cost) 14.000 40,000 Net income (loss) $(10.000 $290.000 Should Chappy eliminate the Plain slacks line? Explain your

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