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CALCULATOR PRINTER VERSION BA NEXT E ercise 20-16 Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner
CALCULATOR PRINTER VERSION BA NEXT E ercise 20-16 Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner $297,700 $505,000 $198,200 Variable expenses 153,400 196,700 135,500 Contribution margin 144,300 308,300 62,700 120,314 233,791 95,295 $23,986 $74,509 $(32,595) Sales Fixed expenses Net income allocated to the three products based on relative sales, and additional fixed expenses of $29,300 (Tingler), common costs will be incurred regardless of how many models are produced. The other fixed expenses would be $79,400 (Shodker), and $34,700 (Stunner). The eliminated if a 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. Compute current net income for Cawley Company. Net income
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