Question
Bramble, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,500 from sales $201,000, variable
Bramble, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,500 from sales $201,000, variable costs $176,000, and fixed costs $30,500. If the Big Bart line is eliminated, $19,600 of fixed costs will remain. Provide an analysis showing whether the Big Bart line should be eliminated.(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
ContinueEliminateNet Income
Increase (Decrease)Sales$
$
$
Variable costs
Contribution margin
Fixed costs
Net Income / (Loss)$
$
$
The Big Bart product line should be
continued
eliminated
.
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