Ivanhoe Company makes three models of tasers. Information on the three products is given below.

		Tingler		Shocker		Stunner
Sales		$296,000		$504,000		$200,000
Variable expenses		151,100		203,300		138,600
Contribution margin		144,900		300,700		61,400
Fixed expenses		116,616		228,184		93,900
Net income		$28,284		$72,516		$(32,500)

Fixed expenses consist of $296,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $79,000 (Shocker), and $34,700 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that 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 Ivanhoe Company.

Net income

$enter the current net income in dollars

(b) Compute net income by product line and in total for Ivanhoe Company if the company discontinues the Stunner product line. (Hint: Allocate the $296,000 common costs to the two remaining product lines based on their relative sales.)

Tingler Net Income		$enter a dollar amount
Shocker Net Income		$enter a dollar amount
Total Net Income		$enter a dollar amount

(c) Should Ivanhoe eliminate the Stunner product line? select an option YesNo Why or why not?

Net income would select an option increasedecrease from $enter a dollar amount to $enter a dollar amount .