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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
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. - Do NOT enter a dollar sign. For example, if you are typing $10,000 as your answer, answer should be typed as 10,000 without any dollar sign. - For any negative amounts, enter them using either a negative sign preceding the number such as -50 or parentheses such as (50). - If the amount is zero, enter 0 . Gregory Industries incurs unit costs of $10 (\$7 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 10,000 of the assembly part at $6 per unit. If the offer is accepted, Gregory will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Gregory will realize by buying the part. Hint: Compare your current option with new option to determine if the decision will increase or decrease net income. - Do NOT enter a dollar sign. For example, if you are typing $10,000 as your answer, answer should be typed as 10,000 without any dollar sign. - Do NOT enter a dollar sign. For example, if you are typing $10,000 as your answer, answer should be typed as 10,000 without any dollar sign. - For any negative amounts, enter them using either a negative sign preceding the number such as -50 or parentheses such as (50). - If the amount is zero, enter 0
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