Question
Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $492,000, variable expenses of $367,000, and fixed
Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $492,000, variable expenses of $367,000, and fixed expenses of $149,000. Therefore, the gloves and mittens line had a net loss of $24,000. If Gator eliminates the line, $42,000 of fixed costs will remain. show 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 Eliminate/Not Eliminate the gloves and mittens line.
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