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Sandhill, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $ 3,500 from sales $
Sandhill, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $ 3,500 from sales $ 201,000, variable costs $ 174,000, and fixed costs $ 30,500. If the Big Bart line is eliminated, $ 19,400 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 Increase (Decrease) | |||||
---|---|---|---|---|---|---|---|
Sales | $ enter a dollar amount | $ enter a dollar amount | $ enter a dollar amount | ||||
Variable costs | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Contribution margin | enter a total amount for the first part | enter a total amount for the first part | enter a total amount for the first part | ||||
Fixed costs | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Net Income / (Loss) | $ enter a total net income or loss amount | $ enter a total net income or loss amount | $ enter a total net income or loss amount |
The Big Bart product line should be select an option eliminatedcontinued. |
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