Current Attempt in Progress Sandhill Company makes three models of tasers. Information on the three products is given below. Sales Variable expenses Contribution margin Fixed expenses Net income Tingler $302,000 (a) 153,100 148,900 117,184 $31,716 Shocker $498,000 201,800 296,200 225,716 $70,484 Stunner Compute current net income for Sandhill Company. $200,000 136,200 63,800 92,400 Fixed expenses consist of $292,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $80,300 (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. $(28,600)

regardiess of how many models are produced. I he direct nxed expenses would be eliminated it 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 Sandhill Company. Net income (b) Compute net income by product line and in total for Sandhill Company if the company discontinues the Stunner product line. (Hint: Allocate the $292,000 common costs to the two remaining product lines based on their relative sales.) Tingler Net incorne Shocker Net Income Total Net Income Current Attempt in Progress Sandhill Company makes three models of tasers. Information on the three products is given below. Fixed expenses consist of $292,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $80,300 (Shocker), and $34,000 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses woutd be elliminated if that modelis 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 Sandhill Company. (b) Compute net income by product line and in total for Sandhill Company if the compary discontinues the Stunner product line. (Hint: Allocate the $292,000 common costs to the two remaining product lines based on their relative sales.) Tingler Net Income Shocker Net Income Totail Net Income (c) Shoutd Sandhill eliminate the Stunner product line? Why or why not