Brief Exercise 20-8 Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $3,500 from sales $201,000, variable costs $175,000, and fixed costs $29,500. If the Big Bart line is eliminated, $20,000 of fixed costs will remain. Prepare 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).)

Continue	Eliminate	Net Income Increase (Decrease)
Sales	$	$	$
Variable costs
Contribution margin
Fixed costs
Net Income / (Loss)	$	$	$

The Big Bart product line should be continuedeliminated.

LINK TO TEXT

Question Attempts: 0 of 3 used

SAVE FOR LATER

SUBMIT ANSWER

Copyright 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved.