Clarington Company makes three models of phasers. Information on the three products is given below: Sales Variable expenses Contribution margin Fixed expenses Net income Stunner $295,000 148.000 147,000 120,500 $26,500 Double-Set $442,500 190,000 252,500 214,900 $37,600 Mega-Power $184,375 139,000 45,375 86,600 ($41,225) Fixed expenses consist of $287,000 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $30,000 (Stunner), $75,800 (Double-Set), and $29,200 (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. Your answer is correct. Calculate current net income for Clarington Company. Current net income $ 22875 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 $287,000 common costs to the two remaining product lines based on their relative sales.) Stunner Double-Set Total Net income $ ta $ e Textbook and Media Question Part Score 0 x Your answer is incorrect. Should Clarington eliminate the Mega-Power product line? Why or why not? Clarington v eliminate the Mega-Power product line. Elimination of the line would cause net income to