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Cawley Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner $204,400 $295,700 $496,100 Sales Variable expenses 197,700
Cawley Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner $204,400 $295,700 $496,100 Sales Variable expenses 197,700 154,100 137,700 Contribution margin 141,600 298,400 66,700 Fixed expenses 226,109 116,846 94,745 $72,291 $(28,045) Net income $24,754 Fixed expenses consist of $294,600 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29,400 (Tingler), $79,400 (Shocker), and $34,300 (Stunner). 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 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 () Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $294,600 common costs to the two remaining product lines based on their relative sales.) (Round answers to the nearest whole dollar, e.g. 5,275.) Tingler Net me Shocker Net Income Total Net Income
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