Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $488,000, variable expenses of $368,000, and fixed expenses of $143,000. Therefore, the gloves and mittens line had a net loss of $23,000. 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. (Enter negative amounts using either a negative sign preceding the number e. g. -45 or parentheses e. g. (45).)

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.