Current Attempt in Progress Cawley Company makes three models of tasers Information on the three products is given below: Tingler Shocker Stunner Sales $296,000 $504,000 $ 200,000 Variable expenses 145,000 190,000 135,000 Contribution margin 151,000 314,000 65.000 Fixed expenses 114.840 225.160 92.000 Net income $36.160 $ 88,840 ${27.000) Fixed expenses consist of $ 290,000 of common costs allocated to the three products based on relative sales, as well as direct fraxed expenses unique to each model of $ 29,000 (Tingler), 579,000 Shocker), and $ 34.000 Stunner. The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income (a) Compute current net income for Cawley Company, Net Income $ (b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $ 290,000 common costs to the two remaining product lines based on their relative sales) Tingler Net Income $ Shocker Net Income 5 Total Net Income $ (c) Should Cawley eliminate the Stunner product line? Why or why not? from 5 tos Net income would