Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lisah Inc. manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $17,000 from sales of $203,000,
Lisah Inc. manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $17,000 from sales of $203,000, variable costs of $182,700, and fixed costs of $37,300. If the Big Bart line is eliminated, $18,200 of fixed costs will remain. Prepare an analysis showing whether the Big Bart 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).)
Continue | Eliminate | Increase (Decrease) | |||||
Variable costsFixed costsSalesContribution marginNet income/(loss) | $ | $ | $ | ||||
Variable costsNet income/(loss)Contribution marginFixed costsSales | |||||||
SalesContribution marginFixed costsVariable costsNet income/(loss) | |||||||
SalesVariable costsContribution marginNet income/(loss)Fixed costs | |||||||
Contribution marginFixed costsNet income/(loss)SalesVariable costs | $ | $ | $ |
The division should notshould be continued. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started