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Sweet Acacia Corporation has a division that manufactures childrens and ladies basketball shoes. If it eliminates manufacturing the ladies basketball shoes, $31,000 of fixed costs will still remain. For the year, the ladies' basketball shoe line had sales of $336,000, variable costs of $274,000, and fixed expenses of $81,000. Prepare an analysis showing whether the company should eliminate the ladies basketball shoe line. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.)

		Continue		Eliminate		Incremental revenue and cost saving
select an item Variable costsNet income / (loss)Fixed costsSalesDirect labourPurchase price		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select an item Net income / (loss)SalesPurchase priceFixed costsVariable costsDirect labour		enter a dollar amount		enter a dollar amount		enter a dollar amount
select an item SalesVariable costsPurchase priceFixed costsNet income / (loss)Direct labour		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name for this statement Fixed costsDirect labourVariable costsNet income / (loss)Purchase priceSales		$enter a total net income or loss amount		$enter a total net income or loss amount		$enter a total net income or loss amount

Arian Corporation select an option should notshould eliminate the ladies' basketball shoes line.

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