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Cawley Company makes three models of tasers. Information on the three products is glven beow $340,000 $510,000 $250,000 190,000 210,000 155,000 Contribution margin 150,000 300,000
Cawley Company makes three models of tasers. Information on the three products is glven beow $340,000 $510,000 $250,000 190,000 210,000 155,000 Contribution margin 150,000 300,000 95,000 24,800 225,700 106,000 $25,200 $74,300 (11,0o0) Fixed expenses Fixed e and $38,500 (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. ames Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. ), $88,000 (Shocker) Compute current net income for Cawley Company by remaining product lines based on their relative sales.) (Round intermediate e-g.5,275.)
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