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Sunland, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,000 from sales $199,000, variable
Sunland, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,000 from sales $199,000, variable costs $175,000, and fixed costs $29,000. 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. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Sales Variable costs Contribution margin Fixed costs Continue $ $ Eliminate Net Income Increase (Decrease) $ Net Income/(Loss) $ $ $ The Big Bart product line should be eliminated continued
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