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 .

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