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42. Justin Industries produces three versions of tires: Supreme, Advanced, and Basic. A condensed segmented income statement for a recent period follows: Supreme Advanced Basic
42. Justin Industries produces three versions of tires: Supreme, Advanced, and Basic. A condensed segmented income statement for a recent period follows: Supreme Advanced Basic Total Sales $1,000,000 $400,000 $130,000 $1,530,000 Variable expenses 650,000 280,000 116,000 1,046,000 Contribution margin 350,000 120,000 14,000 484,000 Fixed expenses 150,000 70,000 44,000 264.000 Net income (loss) $200,000 $ 50,000 $(30,000) $220,000 Assume none of the fixed expenses for the Basic line are avoidable. What will be total net income if the line is dropped? A) $250,000 B) $206,000 C) $210,000 D) $280,000 43. Justin Industries produces three versions of tires: Supreme, Advanced, and Basic. A condensed segmented income statement for a recent period follows: Supreme Advanced Basic Total Sales $1,000,000 $400,000 $130,000 $1,530,000 Variable expenses 650,000 280,000 116,000 1,046,000 Contribution margin 350,000 120,000 14,000 484,000 Fixed expenses 150,000 70,000 44.000 264,000 Net income (loss) $200,000 $ 50,000 $(30,000) $220.000 Assume all of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped? A) $250,000 B) $206,000 C) $210.000 D) $280,000
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