Brief Exercise 20-8 Partially correct answer. Your answer is partially correct.

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Brief Exercise 20-8
Partially correct answer. Your answer is partially correct. Try again. Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $4,900 from sales $200,000, variable costs $175,000, and fixed costs $29,900. If the Big Bart line is eliminated, $19,400 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).)

The Big Bart product line should be Entry field with correct answer. Brief Exercise 20-8 Your answer is partially correct. Try again. Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $4,900 from sales $200,000, variable costs $175,000, and fixed costs $29,900. If the Big Bart line is eliminated, $19,400 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).) Net Income Increase (Decrease) Continue Eliminate Sales Variable costs Contribution margin Fixed costs Net Income/ (Loss) (19400) 14500) The Big Bart product line should be L Click if you would like to Show Work for this question: Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Question Attempts: 1 of 5 used SAVE FOR LATER

Explanation / Answer

Continue Eliminate Incremental Sales 200000 -200000 Variable costs 175000 -175000 Contribution margin 25000 0 -25000 Fixed costs 29900 19400 -10500 Net income -4900 -19400 -14500 The Big Bart line should be continued. This is because , there is an incremental loss of $14,500 on eliminating the line.

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