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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: Hard
Bramble Corp. produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Hard Wood Aluminum Total Rubber Sales $480000 $180000 $65000 $725000 Variable 315000 120000 58000 493000 expenses Contribution 165000 60000 7000 232000 margin Fixed 75000 35000 22000 132000 expenses Net income (loss) $85000 $25000 $(15000) $95000 Assume all of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped? $110000 O $88000 O $115000 O $120000
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