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Can someone help me how to determine this last part? Thank you LLCMP (d) Assume instead that fixed expenses consist of $149,200 of common costs
Can someone help me how to determine this last part? Thank you
LLCMP (d) Assume instead that fixed expenses consist of $149,200 of common costs allocated to the three products equally, and additional fixed costs of $128,600 (Assurance) $296,000 (Decoder), and $101,100 (Burglar Beware). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is phased out. Compute net income by product line and in total for Blossom, Inc., if the company discontinues Burglar Beware product line. Should Blossom, Inc., eliminate the Burglar Beware product line? Why or why not? (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Decoder Company Total Assurance $ $ $ Net income when the Burglar Beware product line is included. . the total net income for the company is Submit Answer e Textbook and Media Attempts: 0 of 1 used Blossom, Inc. produces three models of nome Security Systems. INTUITIDLINTUITITE le pluCUJ LICIIUL Decoder Sales $736.000 294,400 Burglar Beware $304,000 212.800 Variable expenses Contribution margin Fixed expenses Net income Assurance $441,600 220.800 220.800 181,500 $39,300 441.600 348.900 $92.700 91,200 144,500 $(53.300) Fixed expenses consist of $459.000 of common costs allocated to the three products based on relative sales, and additional fixed costs of $45.200 (Assurance). $118.000 (Decoder), and $52.700 (Burglar Beware). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is 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. (a) X Your answer is incorrect. Compute current net income for Blossom, Inc. (Enter loss using either a negative sign preceding the number eg. -2,945 or parentheses e.g. (2,945).) $ Net income 40200
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