Cawley Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales $297,200 $501,100 $196,900 Variable expenses 154,700 201,500 135,600 Contribution margin 142,500 299,600 61,300 Fixed expenses 120,880 235,180 95,140 Net income $21,620 $64,420 $(33,840) Fixed expenses consist of $307,000 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29,200 (Tingler), $80,600 (Shocker), and $34,400 (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 companys net income. (a) Compute current net income for Cawley Company. Net income $Entry field with correct answer

52,200

(b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $307,000 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 Income

Shocker Net Income

Total Net Income