Current Attempt in Progress Safe and Secure, Inc. produces three models of home security systems. Information on the three products is given below: Sales Variable expenses Contribution margin Fixed expenses Net income Assurance $447.900 223,950 223,950 178,600 $45,350 Decoder $746,500 298,600 447,900 344,700 $103,200 Burglar Beware $296,900 207,830 89,070 143,700 $(54,630) Fixed expenses consist of $450,400 of common costs allocated to the three products based on relative sales, and additional fixed costs of $44,200 (Assurance) $120,800 (Decoder), and 551.600(Burglar Beware). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is phased out Matt Dillon, an executive with the company with extensive law enforcement background, feels that the Burglar Beware line should be discontinued to increase the company's net income (a) Your answer is correct. Compute current net income for safe and Secure, Inc. (Enter loss using either a negative sin preceding the number es. 2.945 or parentheses (2.9451 Net income $ 93920 e Textbook and Media Your answer is correct. Compute net income by product line and in total for Safe and Secure, Inc, if the company discontinues the Burglar Beware product line. (Hint: Allocate the $450,400 common costs to the two remaining product lines based on their relative sales.) (Enter loss using either a negative sign preceding the number eg.-2,945 or parentheses es. (2.9451) Assurance Decoder Company Total Net income 10850 $ 45600 $ 56450 e Textbook and Media Attempts: 1 of 5 used (c) Your answer is correct. Should Safe and Secure, Inc., eliminate the Burglar Beware product line? Why or why not? No the total for the company is higher when the Burglar Beware product line is included e Textbook and Media Attempts: 2 of 5 used (d) e Textbook and Media Attempts: 2 of 5 used (d) Assume instead that fixed expenses consist of $141.130 of common costs allocated to the three products equally, and additional fixed costs of $130,200 (Assurance) $296,800 (Decoder), and $98,870 (Burglar Beware). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is phased out Compute net income by product line and in total for Safe and Secure, Inc., if the company discontinues Burglar Beware product line. Should Safe and Secure, Inc., eliminate the Burglar Beware product line? Why or why not? (Enter loss using either a negative sign preceding the number eg.-2,945 or parentheses es. (2.945 Assurance Decoder Company Total Net income $ $ $ the total net income for the company is when the Burglar Beware product line is included. e Textbook and Media Save for Later Attempts: 0 of 5 used Submit
