Old People Racquets manufactures pickleball racquets in four different models. For the year, the Ancient People racquet line had a net loss of $40,000 from sales of $250,000, variable costs of $180,00 and fixed costs of $110,000. If the Ancient People line is eliminated, $30,000 of fixed costs will remain. Should the line be eliminated and why or why not? OIt should be kept because it has a positive contribution margin. It should be eliminated and save the company $10,000. O It should be elimninated-ancient people should never play any type of ball regardless of the dollars. It should be kept and save the company $10,000.

Old People Racquets manufactures pickleball racquets in four different models. For the year, the Ancient People racquet line had a net loss of $40,000 from sales of $250,000, variable costs of $180,00 and fixed costs of $110,000. If the Ancient People line is eliminated, $30,000 of fixed costs will remain. Should the line be eliminated and why or why not? OIt should be kept because it has a positive contribution margin. It should be eliminated and save the company $10,000. O It should be elimninated-ancient people should never play any type of ball regardless of the dollars. It should be kept and save the company $10,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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