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[answered] Brief Exercise 20-8 Lisah, Inc., manufactures golf clubs in


Brief Exercise 20-8

Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $4,900 from sales $200,000, variable costs $175,000, and fixed costs $29,900. 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 $ $ $
Variable costs
Contribution margin
Fixed costs
Net Income / (Loss) $ $ $


The Big Bart product line should be

?eliminatedcontinued


.

 


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