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Lambert, Inc. manufactures several types of accessories. For the year, the knit hats and scarves line had sales of exist400,000, variable expenses of exist310,000, and

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Lambert, Inc. manufactures several types of accessories. For the year, the knit hats and scarves line had sales of exist400,000, variable expenses of exist310,000, and fixed expenses of exist120,000. Therefore, the knit hats and scarves line had a net loss of exist30,000. if Lambert eliminates the knit hats and scarves line, exist20,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the knit hats and scarves line

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