4) The Hat Company is located in Toronto, Ontario. The Hat Company has four product lines. The financial results of one of the product lines is as follows: Sales Variable costs $240,000 140,000 Contribution margin 100,000 Fixed costs 140,000 Net loss $(40,000) If this product line is dropped, 50% of the fixed costs can be eliminated and the other 50% will be allocated to the other product lines. Calculate the net income impact if the Hat Company decides to eliminate this product line. Explain the difference between contribution margin and gross margin or gross profit.