Cawley Company makes three models of casers Information on the three products is given below. Sales Variable expenses Contribution margin Fixed expenses Net income Tingler Shocker Stunner $306,000 $494,000 $200,000 151,000 207,000 130,000 155,000 286,200 62,000 124,248 231,152 96,400 $30,752 $55,040 (34,400) Fixed expenses consist of $305,000 of common costs alocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $30,000 (Tingler), 579,000 (Shocker), and $34,800 (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, feel the stunner line should be discontinued to increase the company's net income Compute current net income for Cawley Company Net Income (b) Compute net income by product line and in total for Cawley Company of the company discontinues the stunner product line. (Hint Allocate the $300,000 common couts to the two remaining product lines based on their relative sales.) Tingler Net Income $ Shocker Net Income Total Net Income (b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $300,000 common costs to the two remaining product lines based on their relative sales.) Tingler Net Income s Shocker Net Income $ Total Net Income $ (c) Should Cawley eliminate the stunner product line? Why or why not? to S Net Income would from s