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Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $6,900 from sales $200,000, variable
Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $6,900 from sales $200,000, variable costs $176,000, and fixed costs $30,900. If the Big Bart line is eliminated, $20,200 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 | $enter sales in dollars | $enter sales in dollars | $enter sales in dollars | ||||
Variable costs | enter variable costs in dollars | enter variable costs in dollars | enter variable costs in dollars | ||||
Contribution margin | enter a subtotal of the two previous amounts | enter a subtotal of the two previous amounts | enter a subtotal of the two previous amounts | ||||
Fixed costs | enter fixed costs in dollars | enter fixed costs in dollars | enter fixed costs in dollars | ||||
Net Income / (Loss) | $enter net income or loss in dollars | $enter net income or loss in dollars | $enter net income or loss in dollars |
The Big Bart product line should be select an option continuedeliminated. |
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