Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $492,000, variable expenses of $367,000, and fixed expenses of $149,000. Therefore, the gloves and mittens line had a net loss of $24,000.
Required:
(a) If Gator eliminates the line, $42,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the gloves and mittens line.

The net operating income will decrease by $18,000.

Explanation:

Giving the following information:

Sales= $492,000

Variable expenses= (367,000)

Contribution margin= 125,000

fixed expenses= ($149,000)

Net operating income= ($24,000)

If the gloves and mittens line is eliminated, $42,000 of the fixed costs will remain. Therefore, the effect on income will be the difference between the current loss and the future loss.

Effect on income= 42,000 - 24,000= 18,000 decreased income

The net operating income will decrease by $18,000.

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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answerthe united states of america;