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A. B. and C. please Oriole Company makes three models of tasers. Information on the three products is given below. Fixed expenses consist of $296,000
A. B. and C. please
Oriole Company makes three models of tasers. Information on the three products is given below. Fixed expenses consist of $296,000 of common costs allocated to the three proctucts based on refative sales, as well as direct foxed expenses unique to each model of $29,000 (Tirgfen. $79,400 (Shocker), and $34,300 (Stumner). The common costs will be incurred James Watt, an executive with the company, feels the stunner line should be discontinued ro increase the company's net income. Compute current net income for Oriole Company. Net income (b) Compute net income by product line and in total for Oriole Company if the company discontinues the Stunner product line. (Hint: Allocate the $296,000 common costs to the two remaining product lines based on their relative sales.) Should Oriole eliminate the Stunner product line? Why or why not Step by Step Solution
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