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CALCULATOR FULL SCREEN PRINTER VERSION BACK Tingler Shocker Stunner 304,000 $500,600 $195,800 154,500 190,800 143,800 Contribution margin 149,500 309,800 52,000 119,768 229,569 92,863 $29,732 $80,231
CALCULATOR FULL SCREEN PRINTER VERSION BACK Tingler Shocker Stunner 304,000 $500,600 $195,800 154,500 190,800 143,800 Contribution margin 149,500 309,800 52,000 119,768 229,569 92,863 $29,732 $80,231 (40,863) NEXT Sales Variable expenses Fixed expenses Net income Fixed model is phased out James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. expenses consist of $298,700 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29,000 (Tingler), S80.100 , and $34,400 (Stunner). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a Compute current net income for Cawley Company Net incomes Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $298,700 common costs t the two remaining product lines based on their relative sales.) (Round answers to the nearest whole dollar, e.g. 5,27s.) Tingler Net Income Shocker Net Income Total Net Income s olicy I All Rights Reserved. A Division of John Wley &Sons, In Version 4.24
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