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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 $65,000 58.000 Sales Variable expenses Contribution margin Fixed expenses Net income (loss) O $105,000 O $125,000 O $114,000 Wood $500,000 325,000 O $140,000 175,000 75,000 $100,000 Aluminum $200,000 140,000 60,000 35,000 $25,000 7,000 22,000 $(15,000) Assume only half of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped? Total $765,000 523.000 242,000 132,000 $110,000
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