Clarington Company makes three models of phasers. Information on the three products is given below: Stunner Double-Set Sales $302,000 153,000 Variable expenses Contribution margin Fixed expenses Mega-Power $188,750 141,500 47,250 88,300 ($41,050) $453,000 196,500 256,500 224,400 $32,100 149,000 113,500 $35,500 Net income Fixed expenses consist of $293,000 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29,400 (Stunner), $74,100 (Double-Set), and $29,700 (Mega-Power). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is discontinued. John Liu, an executive with the company, feels the Mega-Power line should be discontinued to increase the company's net income. Calculate current net income for Clarington Company. Current net income 26550 $ e Textbook and Media Calculate net income by product line and in total for Clarington Company if the company discontinues the Mega-Power product line. (Hint: Allocate the $293,000 common costs to the two remaining product lines based on their relative sales.) Stunner Double-Set Total Net income $ $ $ e Textbook and Media Question Part Score --16 Should Clarington eliminate the Mega-Power product line? Why or why not? Clarington 4 eliminate the Mega-Power product line. Elimination of the line would cause net income to e Textbook and Media