Sandhill Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $482,000, variable expenses of $365,000, and fixed expenses of $141,000. Therefore, the gloves and mittens line had a net loss of $24,000. If Sandhill eliminates the line, $44,000 of fixed costs will remain.

Prepare an analysis showing whether the company should eliminate the gloves and mittens line.

Obviously, if the gloves and mittens line is eliminated net losses with an increase to 44,000 which shown an increase in losses by 20000. Therefore, this line should not be eliminated.

Explanation:

from the Prepared analysis showing whether the company should eliminate the gloves and mittens line. its there for derived that this line should not be eliminated. because Obviously, if the gloves and mittens line is eliminated net losses with an increase to 44,000 which shown an increase in losses by 20000.

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