Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?

Wood Aluminum Hard Rubber Total

Sales: $500,000 $200,000 $65,000 $765,000

Variable Expenses: 325,000 140,000 58,000 523,000

Contribution Margin: 175,000 60,000 7,000 242,000

Fixed Expenses: 75,000 35,000 22,000 132,000

Net Income (loss): $100,000 $25,000 $(15,000) $110,000

a. $125,000

b. $103,000

c. $105,000

d. $140,000

How do I solve this?

Thank you