LML Progress Clarington Company makes three models of phasers. Information on the three products is given below. Stunner Double- Set Mega-Power Sales $451,500 Variable expenses $301,000 151,500 149.500 190,500 $188,125 143,000 45,125 Contribution margin 261,000 Fixed expenses 112,500 226,500 88,000 Net income $37,000 $34,500 ($42,875) Fixed expenses consist of $292,000 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29,600 (Stunner), $75,800 (Double-Set), and $29,600 (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 discontinued. John Liu, an executive with the company, feels the Mega-Power line should be discontinued to increase the company's net income. 4:53 PM ENG 03.11 (b) Calculate net income by product line and in total for Clarington Company if the company discontinues the Mega-Power product line. (Hint: Allocate the $292,000 common costs to the two remaining product lines based on their relative sales.) Stunner Double-Set Total Net income $ e Textbook and Media Attempts: 0 of 3 used Submit Answer Save for Later