Brief Exercise 20-8

Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,000 from sales $201,000, variable costs $176,000, and fixed costs $30,000. If the Big Bart line is eliminated, $20,300 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 eliminatedcontinued.