Question
Vaughn Inc. manufactures golf clubs in three models. For the year, the Tri Town line has a net loss of $11,000 from sales of $249,000,
Vaughn Inc. manufactures golf clubs in three models. For the year, the Tri Town line has a net loss of $11,000 from sales of $249,000, variable costs of $224,100, and fixed costs of $35,900. If the Tri Town line is eliminated, $20,600 of fixed costs will remain. Prepare an analysis showing whether the Tri Town line should be eliminated. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000).)
Continue | Eliminate | Increase (Decrease) | |||||
---|---|---|---|---|---|---|---|
select an item Contribution marginNet income/(loss)Fixed costsSalesVariable costs | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | ||||
select an item SalesNet income/(loss)Variable costsContribution marginFixed costs | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
select a summarizing line for the first part Contribution marginNet income/(loss)SalesVariable costsFixed costs | enter a total amount for the first part | enter a total amount for the first part | enter a total amount for the first part | ||||
select an item Contribution marginFixed costsVariable costsNet income/(loss)Sales | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
select a closing name for this statement Fixed costsNet income/(loss)Contribution marginVariable costsSales | $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 division select an option shouldshould not be continued. |
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