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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
200810 0 -200810
174350 0 -174350
(200810-174350)/200810 = 0.13177 N/A N/A
30880 20180 -10700
-4420 -20180 -15760

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Lisah- Inc-- manufactures golf clubs in three models- For the year- th.docx

  • 1. 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 200810 0 -200810 174350 0 -174350 (200810-174350)/200810 = 0.13177 N/A N/A 30880 20180 -10700 -4420 -20180 -15760