Chappy manufactures two lines of pants: Stripe and Plaid. Last year, the Stripe line sold 25,000 and the Plaid sold 32,000. Chappy is considering to eliminate the Stripe line based on the financial statement listed below:

	Stripe	Plaid
Sales	$400,000	$900,000
Less: COGS
Unit level	220,000	320,000
Deprecation production equipment	80,000	120,000
Gross Margin	100,000	460,000
Less: operating expenses:
Unit level SG&A	80,000	130,000
Corporate (facility level fixed cost)	60,000	60,000
Net income (loss)	$(40,000)	$270,000

Should Chappy eliminate the Stripe slacks line? _______________________

Explain your answer