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Current Attempt in Progress Wildharse Company makes three models of tasers. Information on the three products is given below. Foced expenses consist of $296,000 of
Current Attempt in Progress Wildharse Company makes three models of tasers. Information on the three products is given below. Foced expenses consist of $296,000 of commen costs allocated to the thres products based on relative salas, as wall as direct fixcd expenses unique to each modzl of $29,000 (Tingler), $79,200 (Shocker), and $34,900 (\$tunner). The common costs will be ineurred rezard less of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Whath, an executive with the company, fesis the Stunner line should be discontinuad to increase the company's nat inceme. (a) Compute current nat income for Wildhorse Company. Net income $ (b] Compute nat incame by product line and in total for Wildharse Company if the campany discentinues the Stunner product line (Hint: Allocate the $296,000 commen costs to the two remaining product linas based on their relative salas.) (c) Should Wiltherse eliminate the Stunner product line? Why or why not? Nat income would from 5 to 5 eTextbook and Medla
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