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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
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 Fixed expenses $456,300 228,150 228,150 182,200 $45,950 $760,500 304,200 456,300 351,700 $104,600 Burglar Beware $304,100 212,870 91,230 144,800 $(53,570 ) Net income Fixed expenses consist of $460,800 of common costs allocated to the three products based on relative sales, and additional fixed costs of $44,900 (Assurance), $121,300 (Decoder), and $51,700 (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. (a) 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 $ Click if you would like to Show Work for this question: Open Show Work
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