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 Aluminum Hard Rubber Total Sales $430000 $250000 $68000 $748000 Variable expenses 345000 190000 58000 593000 Contribution margin 85000 60000 10000 155000 Fixed expenses 75000 35000 22000 132000 Net income (loss) $10000 $ 25000 $(12000) $23000 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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