CALCULATOR PRINTER VERSION BACK NEXT Challenge Exercise 20-02 ad Crane, Inc. produces three models of home security systems. Information on the three products is given below: Sales Variable expenses Contribution margin Foxed expenses Net income Assurance Decoder Burglar Beware 1447,900 $746,500 $296,900 223,950 298,600 207.830 223,950 447,900 39,070 178,600 344,700 143,700 $45,350 $103,200 $(54,630 Fixed expenses consist of $450,400 of common costs allocated to the three products based on relative sales, and additional fixed costs of $14,200 (Assurance) $120,000 (Decoder, and $51.600 (Burglar Beware). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a modelis phased out Matt Dillon, an executive with the company with extensive law enforcement background, feels that the Burglar Beware line should be discontinued to increase the company's net income Compute current net income for Crane, Inc. (Enter loss using either a negative sin preceding the number . 2,945 or parentheses a. (2,945).) Net income CALCULATOR PRINTER VERSION BACK NEXT Compute net income by product line and in total for Crane, Inc., if the company discontinues the Burglar Beware product line. (Hint: Allocate the $450,400 common costs to the two remaining product lines based on their relative sales. (Enterlossing either a negative in preceding the number e.g. 2,945 parentheses e.g. (2,945).) Assurance Decoder Company Total Net income Should Crane, Inc., eliminate the Burglar Beware product line? Why or why not? - the total for the company is when the Burglar Deware product line is included LINK TO TEXE Assume instead that fed expenses consist of $141.130 of common costs allocated to the three products equally, and additional forced costs of $130.200 (Assurance), $206,000 (Decoder), and 90,870 Burg ware). The common costs will be incurred rowdies of how many models are produced. The other fixed expenses would be eliminated it a model is phased out compute net om by product line and in total for Crane in the company decontinues Burglar Beware product in Should Crane, Inc., eliminate the Burglar Beware product ine? Why of why not? (Enterossing either a negative in preceding the number og 2.945 of parenthesese.. (2.905)) Assurance Decoder Company Total Assume instead that fixed expenses consist of $141,130 of common costs allocated to the three products equally, and additional faced costs of $130,200 (Assurance). $296,800 (Decoder), and $98,870 (Burglar Beware). The common costs will be incurred regardiess of how many models are produced. The other fored expenses would be eliminated if a model is phased out. Compute net income by product line and in total for Crane, Inc., if the company discontinues furglar Beware product line. Should Crane, Inc., eliminate the burglar Beware product line? Why or why not(Enter loss using either a negative sin preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Assurance Decoder Company Total Net income M, the total net income for the company is when the burglar Deware product ine is included. Click if you would like to show Work for this questioni One Shox Work LINK TO TEXT