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Problem
Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $499,750, variable expenses of $374,010, and fixed expenses of $144,110. Therefore, the gloves and mittens line had a net loss of $18,370. If Gator eliminates the line, $36,360 of fixed costs will remain.
Prepare an incremental analysis.(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Determine whether the company should eliminate the gloves and mittens line?
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