Brief Exercise 20-8 Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,000 from sales $199,000, variable costs $175,000, and fixed costs $29,000. 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).) Sales Variable costs Contribution margin Fixed costs Net Income / (Loss) Continue Eliminate Net Income Increase (Decrease) The Big Bart product line should be Click if you would like to Show Work for this question: Open Show Work
Brief Exercise 20-8 Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,000 from sales $199,000, variable costs $175,000, and fixed costs $29,000. 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).) Sales Variable costs Contribution margin Fixed costs Net Income / (Loss) Continue Eliminate Net Income Increase (Decrease) The Big Bart product line should be Click if you would like to Show Work for this question: Open Show Work
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...
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![Brief Exercise 20-8
Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,000 from sales
$199,000, variable costs $175,000, and fixed costs $29,000. 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).)
Sales
Variable costs
Contribution margin
Fixed costs
Net Income / (Loss)
Continue
Eliminate
Net Income
Increase (Decrease)
The Big Bart product line should be
Click if you would like to Show Work for this question: Open Show Work](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3dfd67c0-f2ad-4982-9de0-7e2a5f4d6cd8%2Ff153b430-e8f1-4b39-8fd9-25e97f4ea49c%2Fbpnzgy3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Brief Exercise 20-8
Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,000 from sales
$199,000, variable costs $175,000, and fixed costs $29,000. 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).)
Sales
Variable costs
Contribution margin
Fixed costs
Net Income / (Loss)
Continue
Eliminate
Net Income
Increase (Decrease)
The Big Bart product line should be
Click if you would like to Show Work for this question: Open Show Work
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