Cawley Company makes three models of tasers. Information on the three products is given below, Shocker Tingler $300.000 Sales $500,000 Variable expenses 151.400 197.000 Stunner $200,000 141.800 58.200 93.900 S(35,700) 148,600 303.000 Contribution margin Fixed expenses Net income 119.400 229,800 $29,200 $73200 Fixed expenses consist of $298.000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $30.000 (Tingler), $80,800 (Shocker), and 34,300 (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 Cawley Company Net Income $ James Watt, an executive with the company, feels the Stunner fine should be discontinued to increase the company's net income. (a) Compute current net income for Cowley Company 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 $298,000 common costs to the two remaining product lines based on their relative sales) Tingler Net Income Shocker Net Income $ Total Net Income $ (c) Should Cawley eliminate the stunner product line? LOVE YOU Allocate the $298,000 common costs to the two remaining product lines based on their relative sales $ Tingler Net Income $ Shocker Net Income Total Net Income $ (c) Should Cawley eliminate the Stunner product line! Why or why not? to 5 Net income would from e Textbook and Media Attempts of 5 used Submit A Sve for later