Question: QUESTION 4 (ELIMINATE UNPROFITABLE SEGMENT): To determine whether the Big Bart line should be eliminated, we need to analyze the costs and savings associated with

QUESTION 4 (ELIMINATE UNPROFITABLE SEGMENT): To determine whether the Big Bart line should be eliminated, we need to analyze the costs and savings associated with its elimination. Net loss from the Big Bart line: $10,000 Fixed costs remaining if the line is eliminated: $20,000 Total savings from eliminating the Big Bart line: $10,000 (net loss) + $20,000 (remaining fixed costs) = $30,000 A Since eliminating the Big Bart line would result in total savings of $30,000, it should be eliminated.

QUESTION 4 (ELIMINATE UNPROFITABLE SEGMENT): To determine whether the Big Bart line should be eliminated, we need to analyze the costs and savings associated with its elimination. Net loss from the Big Bart line: $10,000 Fixed costs remaining if the line is eliminated: $20,000 Total savings from eliminating the Big Bart line: $10,000 (net loss) +$20,000 (remaining fixed costs )=$30,000 Since eliminating the Big Bart line would result in total avings of $30,000, it should be eliminated

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