Question
Do It! Review 20-4 Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $503,710, variable expenses
Do It! Review 20-4 Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $503,710, variable expenses of $372,420, and fixed expenses of $148,390. Therefore, the gloves and mittens line had a net loss of $17,100. If Gator eliminates the line, $35,260 of fixed costs will remain. Prepare an incremental analysis. (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 $ $ $ Determine whether the company should eliminate the gloves and mittens line? The company should the gloves and mittens line.
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