Lisa, Inc., manufactures golf clubs in three models. For the year, the Big Bear line has a net loss of $3,500 from sales $201,000, variable costs $174,000, and fixed costs $30,500. If the Big Bear line is eliminated, $19,400 of fixed costs will remain. Prepare an analysis showing whether the Big Bear line should be eliminated.

Continue or Eliminate

	Continue	Eliminate	Net Income Increase (Decrease)
Sales	$	$	$
Variable Costs	$	$	$
Contribution Margin	$	$	$
Fixed Costs	$	$	$
Net Income / (Loss)	$	$	$