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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 Burglar Beware $442,500 $737,500
Safe and Secure, Inc. produces three models of home security systems. Information on the three products is given below Assurance Decoder Burglar Beware $442,500 $737,500 Sales Variable expenses 221.250 295,000 Contribution margin 221,250 442,500 Fixed expenses Net income $294,900 206,430 88,470 142,600 179,900 349,900 $41350 $92,600 Fixed expenses consist of $454,200 of common costs allocated to the three products based on relative sales, and additional fixed costs of $45,400 (Assurance), $119,900(Decoder), and $52,900 (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. (Enterloss using either a negative sign preceding the number eg.-2,945 or parentheses eg.(2,945)) Net income
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