Clarington Company makes three models of phasers. Information on the three products is given below: Stunner Double-Set Mega-Power Sales $ 298,000 $ 447,000 $ 186,250 Variable expenses 150,500 190,500 138,500 Contribution margin 147,500 256,500 47.750 Fixed expenses 111,500 224,400 87,200 Net income $36,000 $32.100 ($ 39,450) Fixed expenses consist of $ 289,500 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $ 29,500 (Stunner), $ 74,800 (Double-Set) and $ 29,300 (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 $ e Textbook and Media Question Part Score --/2 Calculate net income by product line and in total for Clarington Company if the company discontinues the Mega-Power product line. (Hint Allocate the $ 289.500 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 --/6 Should Clarington eliminate the Mega-Power product line? Why or why not? Clarington eliminate the Mega-Power product line. Elimination of the line would cause net income to