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Bramble Corp. produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Aluminum
Bramble Corp. 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 | $620000 | $310000 | $65000 | $995000 | |||
Variable expenses | 380000 | 250000 | 58000 | 688000 | |||
Contribution margin | 240000 | 60000 | 7000 | 307000 | |||
Fixed expenses | 75000 | 35000 | 22000 | 132000 | |||
Net income (loss) | $165000 | $ 25000 | $(15000) | $175000 |
Assume all of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?
| $50000 |
| $168000 |
| $250000 |
| $190000 |
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