#36

Bramble Corp. 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	$480000		$200000		$65000		$725000
Variable expenses	315000		120000		58000		493000
Contribution margin	165000		80000		7000		252000
Fixed expenses	75000		35000		22000		132000
Net income (loss)	$90000		$ 45000		$(15000)		$120000

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

$120000

$113000

$115000

$135000