Bramble Corporation has a division that manufactures childrens and ladies basketball shoes. If it eliminates manufacturing the ladies basketball shoes, $25,600 of fixed costs will still remain. For the year, the ladies' basketball shoe line had sales of $324,000, variable costs of $252,000, and fixed expenses of $89,600. Prepare an analysis showing whether the company should eliminate the ladies basketball shoe line. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.)

		Continue		Eliminate		Incremental revenue and cost saving
select an item Net income / (loss)SalesVariable costsDirect labourFixed costsPurchase price		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select an item Variable costsPurchase priceFixed costsSalesDirect labourNet income / (loss)		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an item Variable costsSalesFixed costsNet income / (loss)Purchase priceDirect labour		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name for this statement Purchase priceDirect labourFixed costsNet income / (loss)Variable costsSales		$enter a total net income or loss amount		$enter a total net income or loss amount		$enter a total net income or loss amount

Arian Corporation select an option shouldshould not eliminate the ladies' basketball shoes line.