10 acct questions 3

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Ivanhoe, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,000 from sales $201,000, variable costs $176,000, and �xed costs $30,000. If the Big Bart line is eliminated, $20,300 of �xed 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).)

Continue Eliminate Net Income

Increase (Decrease)

Sales $ $ $

Variable costs

Contribution margin

Fixed costs

Net Income / (Loss) $ $ $

221 HW5 Ch 22 Ch 23

Question 9 of 10 - / 1

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The Big Bart product line should be .

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221 HW5 Ch 22 Ch 23

Question 9 of 10 - / 1