Question 9 Safe and Secure, Inc. produces three models of home security systems. Information on the three products is given below: Assurance Decoder Sales Variable expenses Contribution margin Burglar Beware $301,200 210,840 $453,900 226,950 226,950 177,700 $756,500 302,600 453,900 346,000 90,360 Fixed expenses 140,600 $(50,240 ) Net income $49,250 $ 107,900 Fixed expenses consist of $444,800 of common costs allocated to the three products based on relative sales, and additional fixed costs of $45,900 (Assurance), $120,300 (Decoder), and $53,300 (Burglar Beware). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is phased out. Matt Dillon, an executive with the company with extensive law enforcement background, feels that the Burglar Beware line should be discontinued to increase the company's net income. Compute current net income for Safe and Secure, Inc. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Net income $ Compute net income by product line and in total for Safe and Secure, Inc., if the company discontinues the Burglar Beware product line. (Hint: Allocate the $444,800 common costs to the two remaining product lines based on their relative sales.) (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Assurance Decoder Company Total Net income $ $ $ LINK TO TEXT Should Safe and Secure, Inc., eliminate the Burglar Beware product line? Why or why not? the total for the company is when the Burglar Beware product line is included. Assume instead that fixed expenses consist of $140,640 of common costs allocated to the three products equally, and additional fixed costs of $128,100 (Assurance), $295,100 (Decoder), and $100,460 (Burglar Beware). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is phased out. Compute net income by product line and in total for Safe and Secure, Inc., if the company discontinues Burglar Beware product line. Should Safe and Secure, Inc., eliminate the Burglar Beware product line? Why or why not? (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Assurance Decoder Company Total Net income $ $ $ the total net income for the company is when the Burglar Beware product line is excluded. Click if you would like to Show Work for this question: Open Show Work