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