Current Attempt in Progress Clarington Company makes three models of phasers. Information on the three products is given below: Stunner Double-Set Mega-Power Sales $330,000 $495,000 $206,250 Variable expenses 145,000 190,000 135,000 Contribution margin 185,000 305,000 71,250 Fixed expenses 110,000 289,000 103,000 Net income $75,000 $16,000 ($31,750) Fixed expenses consist of $370,000 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29,000 (Stunner), $74,000 (Double-Set), and $29,000 (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. Calculate current net income for Clarington Company. Current net income $ 59250 e Textbook and Media Question Part Score --12 Calculate net income by product line and in total for Clarington Company if the company discontinues the Mega-Power product line. (Hint: Allocate the $370,000 common costs to the two remaining product lines based on their relative sales.) Stunner Double-Set Total Net income $ 1 $ $ e Textbook and Media e Textbook and Media Question Part Score --16 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 e Textbook and Media Question Part Score Attempts: 0 of 3 used Submit Answe Save for Later