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Calculate net income by product line and in total for Bonita Company if the company discontinues the Mega-Power product line. (Hint: Allocate the $292.000 common

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Calculate net income by product line and in total for Bonita Company if the company discontinues the Mega-Power product line. (Hint: Allocate the $292.000 common costs to the two remaining product lines based on their relative sales) Bonita Company makes three models of phasers. Information on the three products is given below: Fixed costs consist of $292,000 of common costs allocated to the three products based on relative sales, and additional fixed costs of $29,600 (Stunner). $74,800 (Double-Set), and $29,600 (Mega-Power). The common costs will be incurred regardless of how many models are produced. The other fixed costs would be eliminated if a model is discontinued. Robert Williams, an executive with the company. feels the Mega-Power line should be discontinued to increase the company's net income

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