Question

Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $10,000 from sales $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. (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 sales in dollars		$enter sales in dollars		$enter sales in dollars
Variable costs		enter variable costs in dollars		enter variable costs in dollars		enter variable costs in dollars
Contribution margin		enter a subtotal of the two previous amounts		enter a subtotal of the two previous amounts		enter a subtotal of the two previous amounts
Fixed costs		enter fixed costs in dollars		enter fixed costs in dollars		enter fixed costs in dollars
Net Income / (Loss)		$enter net income or loss in dollars		$enter net income or loss in dollars		$enter net income or loss in dollars

The Big Bart product line should be select an option

continuedeliminated

.

Answer 1