Bonita Industries produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows:

	Wood		Aluminum		Hard Rubber		Total
Sales	$590000		$280000		$65000		$935000
Variable expenses	365000		220000		58000		643000
Contribution margin	225000		60000		7000		292000
Fixed expenses	75000		35000		22000		132000
Net income (loss)	$150000		$ 25000		$(15000)		$160000

Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?

$153000

$220000

$175000

$65000

Companies that sell products whose prices are set by market forces are called

price setters.

price givers.

price leaders.

price takers.