Answer:
The Big Bart product line should be retained
Explanation:
Continue Eliminate Net Income
Sales $201,000 $0 -$201,000
Variable costs <u>$175,000</u> <u>$0</u> <u>$175,000</u>
Contribution margin $26,000 $0 -$26,000
Fixed costs <u>$29,800</u> <u>$19,700</u> <u>$10,100</u>
Net Income / (Loss) <u>-$3,800 </u> <u>-$19,700</u> <u>-$15,900</u>
<u>Conclusion</u>; The Big Bart product line should be retained, not eliminated because the Net loss of been eliminated is very negative than to be retained.