) $502,000 $200,000 Variable expenses 153,400 196,700 135,500o Contribution margin Flxed expenses 144,600 305,300 64,500 120,188 233012 95.900 Net income 212 $72.288 $131400) Fixed expenses consist of $306,000 of common costs allocated to the three products based on relative sales, as well as dir (Shocker), and $34,700 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fxed expenses would be ect foxed expenses unique to each model of $29,000 (Tingler), $79,400 eliminated it that model is phased out James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income Compute current net income for Cawley Company Net income $ 65300 Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line.0fnt Alocate the $306,000 common costs to the two remaining product lines based on their relative sales.) Tingler Net Income Shocker Net Income $ Total Net Income MacBook Air