Question 2 of 2 8/10 E View Policies Show Attempt History Current Attempt in Progress Clarington Company makes three models of phasers Information on the three products is given below: Stunner Double-Set $448,500 Mega-Power $186,875 Sales $299,000 150,000 193,000 139.000 Variable expenses Contribution margin 149,000 255,500 47,875 Fixed expenses 117,500 219,600 87.600 Net income $31.500 $35.900 ($39,725) Fixed expenses consist of $292,000 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29,400 (Stunner). $74,100 (Double-Set), and $29,200 (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 Llu, an executive with the company, feels the Mega-Powerline should be discontinued to increase the company's net income. Question 2 of 2