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Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $4,000 from sales $199,000, variable
Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $4,000 from sales $199,000, variable costs $174,000, and fixed costs $29,000. If the Big Bart line is eliminated, $19,000 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 | Net Income Increase (Decrease) | |
Sales | $ | $ | $ |
Variable costs | |||
Contribution margin | |||
Fixed costs | |||
Net Income / (Loss) | $ | $ | $ |
The Big Bart product line should be
eliminatedcontinued
.
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