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Question 4 (Eliminate Unprofitable Segment) Lisah Inc. manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of
Question 4 (Eliminate Unprofitable Segment) Lisah Inc. manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $10,000 from sales $200,000, variable costs $180,000, and fixed costs $30,000. If the Big Bart line is eliminated, $20,000 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated. (5 marks]
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