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Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Sales
Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Sales $500,000 Variable expenses 325,000 Contribution margin 175,000 Fixed expenses 75,000 Net income (loss) $100,000 Aluminum $200,000 140,000 60,000 35.000 $ 25.000 Hard Rubber $65,000 Total $765,000 58,000 523,000 7,000 242,000 22.000 132.000 $(15.000) $110.000 Assume all of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped? $125,000 $105,000 $103,000 $140,000
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