Instructions (a) Prepare an incremental analysis for the subcomponent JXY. Your analysis should have columns for (1) Make the suh. component JXY, (2) Buy the subcomponent [XY, and (3) Incremental Costs (Savings). (b) Based on your analysis, what decision should management make? (c) Would the decision be different if Montel has the opportunity to produce 2,000 units with the facilities currently being used to manufacture the subcomponent JXY? Show calculations 1 17.32 Claringon Company males thre model f paes nformaotsi given be Mega-Power $ 200,000 130,000 70,000 100,000 Double-Set $480,000 Sales Variable expenses Contribution margin Fixed expenses Net income Stunner $320,000 160,000 160,000 120,000 200,000 280,000 225,000 55,000 (30,000) S 40,000 Fixed expenses consist of $300,000 of common costs allocated to the three products based on relative sales, and adi- tional fixed expenses of $35,000 (Stunner), $70,000 (Double-Set), and $40,000 (Mega-Power). 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 net income. Instructions (a) Calculate current net income for Clarington Company. John Liu, an executive with the company, feels the Mega-Power line should be discontinued to increase the company's (b) Calculate net income by product line and in total for Clarington Company if the company discontinues the Meg Power product line. (Hint: Allocate the $300,000 common costs to the two remaining product lines based on th relative sales.) uCanoniminat the Megea Powerroet nl Wy ry not ted helow relate to a variety of different decision situations