Gator corporation manufactures

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Reference no: EM13924150

Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $503,690, variable expenses of $372,430, and fixed expenses of $140,550. Therefore, the gloves and mittens line had a net loss of $9,290. If Gator eliminates the line, $41,120 of fixed costs will remain.

Prepare an analysis showing whether the company should eliminate the gloves and mittens line. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Continue       Eliminate       Net Income
Increase (Decrease)
Sales       mce_markernbsp;     mce_markernbsp;     mce_markernbsp;
Variable costs
Contribution margin
Fixed costs
Net income       mce_markernbsp;     mce_markernbsp;     mce_markernbsp;

The analysis indicates that Gator should
the gloves and mittens line.

Reference no: EM13924150

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