Vaughn Inc. manufactures golf clubs in three models. For the year, the Tri Town line has...
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Vaughn Inc. manufactures golf clubs in three models. For the year, the Tri Town line has a net loss of $11,000 from sales of $249,000, variable costs of $224,100, and fixed costs of $35,900. If the Tri Town line is eliminated, $20,600 of fixed costs will remain. Prepare an analysis showing whether the Tri Town line should be eliminated. (If an amount reduces the net income then enter with a negative sign preceding the number eg.-15,000 or parenthesis, e.g. (15,000).) Sales Variable costs Contribution margin Fixed costs $ Continue $ Eliminate Increase (Decrease) $ Net income/(loss) $ New Tab - Avast Sec... $ $ The division should be continued. Vaughn Inc. manufactures golf clubs in three models. For the year, the Tri Town line has a net loss of $11,000 from sales of $249,000, variable costs of $224,100, and fixed costs of $35,900. If the Tri Town line is eliminated, $20,600 of fixed costs will remain. Prepare an analysis showing whether the Tri Town line should be eliminated. (If an amount reduces the net income then enter with a negative sign preceding the number eg.-15,000 or parenthesis, e.g. (15,000).) Sales Variable costs Contribution margin Fixed costs $ Continue $ Eliminate Increase (Decrease) $ Net income/(loss) $ New Tab - Avast Sec... $ $ The division should be continued.
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