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Question 2 of 2 View Policies < Current Attempt in Progress Sunland Company makes three models of tasers. Information on the three products is
Question 2 of 2 View Policies < Current Attempt in Progress Sunland Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales $298,000 $502,000 $200,000 Variable expenses 154,700 201,500 135,600 Contribution margin 143,300 300,500 64,400 Fixed expernes 120,784 235,216 96,000 Net income $22,516 $65,284 $(31,600) !!! 3 Fixed expenses consist of $308.000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $80,600 (Shocker), and $34,400 (Stunner]. The common costs will be incurred regardless of how many models are produced. The direct foxed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income (2) Compute current net income for Sunland Company Net income $ Compute net income by product line and in total for Sunland Company if the company discontinues the Stunner product line. (Hint Allocate the $308,000 common costs to the two remaining product lines based on their relative sales Tingler Net Income Shocker Net Income $ Total Net Income $ Ich Should Sunland eliminate the Stunner product line? Why or why not? Net income would from S
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