Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $4,700 from sales $201,000, variable costs $175,000, and fixed costs $30,700.
If the Big Bart line is eliminated, $19,800 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated.
(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
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Continue
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Eliminate
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Net Income
Increase (Decrease)
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Sales
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$
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$
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$
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Variable costs
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Contribution margin
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Fixed costs
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Net Income / (Loss)
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$
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$
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$
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