Exercise 7-16 Cawley Company makes three models of tasers. Information on the three products is given below. Sales Variable expenses Contribution margin Tingler $299,800 151,100 148,700 119,795 $28,905 Shocker $498,600 195,300 303,300 229,770 $73,530 Stunner $199,000 138,700 60,300 94,035 $(33,735) Fixed expenses Net income Fixed expenses consist of $300,400 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29,500 (Tingler), $79,600 (Shocker), and $34,100 (Stunner. 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. 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 Cawley Company. Net income (b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $300,400 common costs to the two remaining product lines based on their relative sales.) (Round answers to the nearest whole dollar, e.g. 5,275.) Tingler Net Income Shocker Net Income Total Net Income