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Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has...

Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,500 from sales $201,000, variable costs $176,000, and fixed costs $30,500. If the Big Bart line is eliminated, $19,600 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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Answer #1
Differential analysis
Continue Eliminated Differential
Effectt on income
Sales 201000 0 -201000
variable cost 176000 0 176000
Contribution margin 25000 0 -25000
Fixed cost 30500 19600 10900
Net Income /(loss) -5500 -19600 -14100
No, It shallnot be eliminated
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