Cawley Company makes three models of tasers. information on the three products is given below. Flacd expenses consist of $292,000 of common costs allocated to the three products based on relative sales, as well as direct foxed expenses unique to each model of $29.000 (Tinglen, $90,300 (\$2iocken), and $34,000 ( 5tunnen ) The comenon costs will be incurred regardless of how many inodels are produced. The direct hxed expenses would be eliminated if that model is phased out. James Watt, an emecutive with the compary, feels the Stunner line should be discontinued to increase the compaors net income. (a) Computecurrent net income for Cawley Company: Net incorne Computenet income by product line and in totalfor Cawley Company if the company discontinues the Stunner product line. IHint: Allocate the $292,000 common costs to the two remuining product lines based on their relative sales. Tingier Net Incorre Shocker Net income Total Net income (c) Should Cawhey eliminate the Stunner product line? Why or why not? Net incone would from 5 tos If soid now, the current machine would have asalvage value of $8,700. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years. Prepare an incremental analysis to determine whether the current machine should be replaced. (In the first two columns, enter costs and expenses as positive amiounts, and any amounts received as negative anounts. In the third column, enter net income increases as positive amolints and decreases as negative amounts. Enter negative amounts using either a negative sign preceding the number es. -45 or parentheses es. (45)] Johnson Enterprises uses a computer to handle its sales involces Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales imvices. Management is considering updating its computer with a taster model that would eliminate all of the overtime processing. If sold now, the current machine would huve a salvage value of $8,700, if operated for the remainder of its useful life, the current machine would have zero salvage value. The new muchine is copected to huve zero salvage value after 5 years. Prepare an incremental arolvis to determine whether the current machine should be replaced, In the font two coltumns, enter costs and openies as positive amounts, and any omounts received or negative amounts. In the third columin, enter net income increoses as positive cs(45)j