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Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $3,500 from sales $201,000,
Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $3,500 from sales $201,000, variable costs $174,000, and fixed costs $30,500. If the Big Bart line is eliminated, $19,400 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 Sales 201000 i Variable costs 174000 i Contribution margin 27000 i Fixed costs 30500 i 19400 Net Income/(Loss) The Big Bart product line should be continued 23500 $ 0 0 19400 1A Net Income Increase (Decrease)
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