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Chattanooga Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Hard Rubber
Chattanooga Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Hard Rubber $63,000 58,000 Sales Variable expenses Contribution margin Fixed expenses Net income (loss) $105,000 $125,000 O $140,000 Wood $500,000 325,000 O $100,000 175,000 75,000 $100,000 Aluminum $200,000 140,000 60,000 35,000 $25,000 5,000 25.000 $(20,000) Assume all of the fixed expenses for the hard rubber line are not avoidable. What will be total net income if the Hard Rubber line is dropped? Total $763,000 523,000 240,000 135,000 $105,000
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