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Drop downs: Yes or No Higher, Lower or Same Pharoah, Inc. produces three models of home security systems. Information on the three products is aven
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Yes or No
Higher, Lower or Same
Pharoah, Inc. produces three models of home security systems. Information on the three products is aven below Assurance Decader Burglar Beware 448,000 740,000 224,400 299,200 224.400 448,300 02.400 J49,: 294,900 205,430 83,470 Contributon margin roced expenses Net income Fo ed expenses consist o $456 600 o common costs allocated to the three products b5sed on reative sales, and dditional o ed costs o $45,200 Assurance), silB 00 Decoder), and S52 200 Burglar Beware The common costs wil be incurred egard ess of how many models re produced The other fixed expenses would be eliminsted if s model is phesed out. Matt Dillan, an axe t ve with the company withextens ve law rtercemert bak round, feels that the Burglar Bewara line sho ld be discontinued to increase the company's nat income. Compute cument net income for Phneh, Inc. (Enter loss usang ethera negative sign preceding the number e.g.-2 945 or parentheses e.g. (2,945).) Net income Compute net income by product line d n total or Pharoah, Inc., f the company discont the number e.g.-2,945 or parentheses e.g. (2,945).) es the Burglar Be ere product line. Hint: Allocate the s455 600 common costs to e two remai ng product lines based on their elat e sa es Enter oss using either negative sign preceding Decoder Company Total Net income Should Pharoah, Inc., elimnate the Burglar Beware product line? Why wy not? the total for the company is "when the Burglar Beware product ine is included. Assume instead that fixed expenses consist of $151,430 of common costs ellacated to the three products equally, and additional fixed costs of $129,300 (Assurence), $292,900 (Decoder), and $95,370 (urgar Dewsre), The common costs will be incurred regardless of how many models are produced. T e other fixed expenses a ould be el "nated if model ssed out. d ompte net income by p o uct line and n totel for pharah Inc., f the company econtinue5 Burglar Be are product line. Should er eh mc el m ete e Burglar Ber are product line? w y or why not? Eater loss using either anegative sign preceding the numbere.g.-2,945 or pareathesese.g.(2,945).) Decoder Company Total the totel net income for the compsny is when the Burglar Beware product line is indudedStep by Step Solution
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