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Develop analysis showing the company should eliminate gloves

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Question - Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $488,000, variable expenses of $368,000, and fixed expenses of $143,000. Therefore, the gloves and mittens line had a net loss of $23,000. If Gator eliminates the line, $42,000 of fixed costs will remain. Develop analysis showing whether the company should eliminate the gloves and mittens line.

Reference no: EM132170019

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