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Carla Vista Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales $298,000 $502,000 $200,000 Variable

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Carla Vista Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales $298,000 $502,000 $200,000 Variable expenses 153,400 196,700 135,500 Contribution margin 144,600 305,300 64,500 Fixed expenses 120,188 233,012 95,900 Net income $24,412 $72,288 $(31,400) Fixed expenses consist of $306,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $79,400 (Shocker), and $34,700 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that 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. (a) Compute current net income for Carla Vista Company. Net income $

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