Question

Send to the Question 3 View Pollides Current Attempt in Progress Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bartline has a net loss of $6.600 from sales $200.000 variable costs $176,000 and fuced costs $30.600. If the Big Bartline is eliminated, $20600 of fixed costs will remain. Prepare an analysis showing whether the Big Bartline should be eliminated. (Enter negative amounts using either a negative sin preceding the numberes-45 or parentheses 50 Continue Net Income Increase Decrease) Sales Variable costs Net Income The Big Bart product line should be Attempt of used to search FIGH

Answer 1

		Continue	Eliminate	Net Income Increase/ (Decrease)
1]	Sales	$        2,00,000	$                    -	$     -2,00,000
	Variable costs	$        1,76,000	$                    -	$       1,76,000
	Contribution margin	$           24,000	$                    -	$         -24,000
	Fixed costs	$           30,600	$          20,600	$          10,000
	Net income/(Loss)	$            -6,600	$         -20,600	$         -14,000
2]	The Big Bart product line should be continued as, elimination would decrease Net income by $14,000