Final Exam - Summer 2022 Question 7 of 13

Final Exam - Summer 2022 Question 7 of 13 current Attempt in Progress - / 10 Splish Corporation has a division that manufactures children's and ladies' basketball shoes. If it eliminates manufacturing the ladies' basketball shoes, $32,800 of fixed costs will still remain. For the year, the ladies' basketball shoe line had sales of $329,000, variable costs of $268,000, and fixed expenses of $81,800. 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 Arian Corporation eliminate the ladies' basketball shoes line.