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10. Pujols Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood
10. Pujols Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Aluminum Hard Rubber Total Sales $500,000 $200,000 $65,000 $765,000 Variable expenses 325,000 140,000 58,000 523,000 Contribution margin 175,000 60,000 7,000 242,000 Fixed expenses 75,000 35,000 22,000 132.000 Net income (loss) $100,000 $ 25,000 $(15,000) $110,000 a.) Assume all of the fixed expenses for the hard rubber line are common costs. What will be total net income if the line is dropped? b) Assume half of the fixed expenses for the hard rubber line are common costs. What will be total net income if the line is dropped? c) Assume half of the fixed expenses for the hard rubber line are traceable costs. What will be total net income if the line is dropped
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