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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 Hard
Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Hard Total Aluminum Rubber Sales $500,000 $200,000 $65,000 $765,000 Variable expenses 325,000 58,000 523,000 140,000 60,000 175,000 242,000 Contribution margin Fixed expenses 7,000 22.000 75.000 35,000 132.000 Net income (loss) $_25,000 $100,000 $(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? a $103,000 Ob. $105,000 C. $140,000 O d. $125,000 Clear my choice
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