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Current Attempt in Prozress - Your answer is partially correct. Wildhorse Company males three modals of tasers. Information on the three products is given below.
Current Attempt in Prozress - Your answer is partially correct. Wildhorse Company males three modals of tasers. Information on the three products is given below. Foud expenses consist of $296,000 of commen costs allocated to the thres products besed on relative sales, as wall as direct fixed expanses unique to each model of $29,000 (Tingler), $79,200 (Shocker), and $34,900 (Stunner). The common casts will be incurred rezard less of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Viatt, an evecutive with the company, feels the Stunner line should be discontinuad to increase the company's nat income. (a) Compute currant net income for Wildhorse Campany. Net income [b] Compute net income by product line and in total for Wildharse Company if the company discentinues the Stunner product line IHint: Allocate the $296,000 commen costs to the two ramaining product lines based on thair relative 5 ass.) Should Wildherse aliminate the Stunner product line? Why or why not? Net income would from $ to 5 eTextbook and Medla
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