Prepare an incremental analysis

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Reference no: EM131204443

Brief Exercise 20-8 Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $3,690 from sales $200,910, variable costs $174,010, and fixed costs $30,590. If the Big Bart line is eliminated, $20,350 of fixed costs will remain.

Prepare an incremental analysis. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

(a table containing) Continue Eliminate Net Income Increase (Decrease) Sales $ $ $ Variable costs Contribution margin Fixed costs Net Income $ $ $

Determine whether the Big Bart line should be eliminated or continued.

The Big Bart product line should be .

Reference no: EM131204443

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