Answer and Explanation:
The preparation of the analysis is shown below:
Particulars Continue Eliminate Net Income (Decrease)
Sales $200,000 $0 -$200,000
Less: Variable Costs $176,000 $0 -$176,000
Contribution margin $24,000 $0 -$24,000
Fixed Costs $30,600 $20,600 $10,000
Net Income/Loss -$6,600 -$20,600 -$14,000
As we can see that in both the cases whether eliminate or continue the amounts comes in negative but in continue there is a less amount of loss as compared to eliminated one
Therefore, in this case, the big Bart line could be continued
