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Riverbed 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

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Riverbed 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 Riverbed eliminates the line, $42,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the gloves and mittens line. Of amount decreases net income then enter the amount using either a negative sign preceding the number eg. -45 or parentheses eg. (451) Continue Eliminate Net Income Increase (Decrease) Sales $ $ Variable costs Contribution margin Fixed costs Net income /(Loss) $ $ The analysis indicates that Riverbed should the gloves and mittens line

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