23. Crane 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	$540000		$230000		$65000		$835000
Variable expenses	340000		170000		58000		568000
Contribution margin	200000		60000		7000		267000
Fixed expenses	75000		35000		22000		132000
Net income (loss)	$125000		$ 25000		$(15000)		$135000

Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?

a) $128000

b) $90000

c) $150000

d) $170000

24. Marigold Corp. is contemplating the production and sale of a new widget. Projected sales are $480000 (or 80000 units) and desired profit is $32000. What is the target cost per unit?

a) $5.60

b) $6.00

c) $6.40

d) $4.00