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Indigo Inc. manufactures golf clubs in three models. For the year, the Handley line has a net loss of $11,500 from sales of $215,000, variable
Indigo Inc. manufactures golf clubs in three models. For the year, the Handley line has a net loss of $11,500 from sales of $215,000, variable costs of $193,500, and fixed costs of $33,000. If the Handley line is eliminated, $20,300 of fixed costs will remain. Prepare an analysis showing whether the Handley line should be eliminated. (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).)
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