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Cullumber, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,000 from sales $200,000, variable
Cullumber, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,000 from sales $200,000, variable costs $176,000, and fixed costs $29,000. If the Big Bart line is eliminated, $20,400 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 continued/eliminated . |
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