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Pyre Industries produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Aluminum.
Pyre Industries 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 $450,000 $150,000 $65,000 $665,000 Variable 300,000 90,000 58,000 448,000 expenses Contribution margin 150,000 60,000 7,000 217,000 Fixed expenses 75,000 35,000 25,000 135,000 Net income (loss) $75,000 $ 25,000 $(18,000) $82,000 Assume NONE of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped? 75,000 O 78,000 O 100,000
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