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Gullumber Company makes three nodels of tasers. Information on the three products is given below. Fined opemes consint of $294,000 of comenon costs allocated to
Gullumber Company makes three nodels of tasers. Information on the three products is given below. Fined opemes consint of $294,000 of comenon costs allocated to the three products based an relatime sales, as well as direct foued regardless of how many model are produced. The direct foued expenses would be eliminated if that model is phased out. James Watt, an enccutive with ithe compary, feets the Stiener line should be docontinued to increase the compuny's net income. (a) Comsute current net income for Cullumber Company Netineome (b) Nlocate fhe \$294000 common costa to the two remalning product lines based on their redative sales] Tinder Net income 5
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