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Marigold Corp. produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Aluminum

Marigold Corp. produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows:

Wood Aluminum Hard Rubber Total
Sales $560000 $250000 $65000 $875000
Variable expenses 350000 190000 58000 598000
Contribution margin 210000 60000 7000 277000
Fixed expenses 75000 35000 22000 132000
Net income (loss)

$135000

$ 25000

$(15000)

$145000

Assume all of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?

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