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QUESTION 4 (ELIMINATE UNPROFITABLE SEGMENT) marks] Lisah Inc. manufactures golf clubs in three models. For the year, the Big Bart line has a net

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QUESTION 4 (ELIMINATE UNPROFITABLE SEGMENT) marks] Lisah Inc. manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $10,000 from sales of $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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