Question 7 Lion Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $498,000, variable expenses of $374,500, and fixed expenses of $148,000. Therefore, the gloves and mittens line had a net loss of $24,500. If Lion eliminates the line, $39,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the gloves and mittens line. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000).) Continue Eliminate Net Income Increase (Decrease) Company eliminate the gloves and mittens line