Question
Oriole Company produces three versions of baseball bats wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows Wood
Oriole Company produces three versions of baseball bats wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows Wood Hard Rubber Total Aluminum $220000 Sales $530000 $815000 Variable expenses 335000 160000 553000 Contribution margin 195000 60000 262000 Fixed expenses 75000 35000 132000 Net income (losa) $120000 $25000 $(15000) $130000 If the Hard Rubber Division is eliminated, fixed costs will be absorbed by other divisions. What will be Oriole Company's revised net income? A $123000 B$145000 C.$95000 0.1160000 $65000 58000 7000 22000
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