Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $4.420 from sales $200,810, variable costs $174.350, and fixed costs $30.880. If the Big Bart line is eliminated, $20,180 of fixed costs will remain.
Solution
Entries are:
Since -15760 < 0, the Big Bart line should be continued
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