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100. Smitten Kitchen Company produces three versions of crock pots: small, medium, and large. A condensed segmented income statement for a recent period follows: Large
100. Smitten Kitchen Company produces three versions of crock pots: small, medium, and large. A condensed segmented income statement for a recent period follows: Large Medium Small Total Sales $200,000 $200,000 $105,000 $505,000 Variable expenses 125,000 110,000 65,000 300,000 Contribution margin 75,000 90,000 40,000 205,000 Fixed expenses 55,000 55,000 45,000 155,000 Net income (loss) $ 20,000 $ 35,000 $(5,000 ) $ 50,000 Assume all of the fixed expenses for the small size crock pot are avoidable. What will be total net income if the line is dropped? a. $55,000 b. $45,000 c. $95,000 d. $10,000
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