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Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,000 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 $5,000 from sales $200,000, variable costs $176,000, and fixed costs $29,000. If the Big Bart line is eliminated, $20,400 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 | net income (+ or -) | |
sales | |||
variable costs | |||
contribution margin | |||
fixed costs | |||
net income/ loss |
The big bart product line should be continued or eliminated?
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