Clarington Company makes three models of phasers. Information on the three products is given below:

B) Calculate the net income line and in total for Clarington Company if the company discontinues the Mega-Power product line.

Net Income Stunner Double-Set Total

C)

Clarington Company makes three models of phasers. Information on the three products is given below: Double-Set Sales Variable expenses Contribution margin Fixed expenses Stunner $333,000 149,000 184,000 124,000 $60,000 $499,500 209,500 290,000 261,300 $28,700 Mega-Power $208,125 135,500 72,625 100,400 ($27,775 ) Net income Fixed expenses consist of $352,500 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29,300 (Stunner), $74,000 (Double-Set), and $29,900 (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. (a) Calculate current net income for Clarington Company. Current net income $ e Textbook and Media