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Justin Industries produces three versions of tires: Supreme, Advanced, and Basic. A condensed segmented income statement for a recent period follows: Supreme Advanced Basic Total

Justin Industries produces three versions of tires: Supreme, Advanced, and Basic. A condensed segmented income statement for a recent period follows: Supreme Advanced Basic Total Sales $1,000,000 $400,000 $130,000 $1,530,000 Variable expenses 650,000 280,000 116,000 1,046,000 Contribution margin 350,000 120,000 14,000 484,000 Fixed expenses 150,000 70,000 44,000 264,000 Net income (loss) $200,000 $ 50,000 $(30,000) $220,000 Assume 34,000 of the fixed expenses for the Basic line are avaliable. What will be total net income if the line is dropped?

a) 250,000

b) 206,000

c)210,000

d) 240,000

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thanks

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