Sandhill Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $489,000, variable expenses of $367,000, and fixed expenses of $142,000. Therefore, the gloves and mittens line had a net loss of $20,000. If Sandhill eliminates the line, $40,000 of fixed costs will remain. Please help with an analysis showing whether the company should eliminate the gloves and mittens line.

Net Income Continue Eliminate Increase (Decrease) Sales 515 $ 35 Variable costs Contribution margin Fixed costs Net income / (Loss) 55 $ $ The analysis indicates that Sandhill should v the gloves and mittens line