Pell, Inc. manufactures computers in four different models. For the year, the Star Premium line has a net loss of $22,000 from sales $200,000, variable costs $164,000, and fixed costs $58,000. If the Star Premium line is eliminated, $20,000 of fixed costs will remain. Prepare an analysis showing whether the Star Premium line should be eliminated.

Continue or Eliminate

	continue	eliminate	net income increase (decrease)
sales	$	$	$
variable costs	$	$	$
contribution margin	$	$	$
fixed costs	$	$	$
net income / (loss)	$	$	$