Lion Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $500,860, variable expenses of $375,170, and fixed expenses of $150,250. Therefore, the gloves and mittens line had a net loss of $24,560. If Lion eliminates the line, $40,526 of fixed costs will remain. Complete the analysis showing whether the company should eliminate the gloves and mittens line. (If an amount should be blank, enter a zero. All boxes must be filled to be correct. If amount decreases net income, use either a negative sign preceding the number eg -45 or parentheses eg (45).)
net income
continue eliminate increase (decrease)
sales
- variable expense
- contribution margin
- fixed expenses
- net incom