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Sheridan Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Aluminum
Sheridan Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Aluminum Hard Rubber Total Sales $560000 $260000 $60000 $880000 Variable expenses 365000 200000 58000 623000 Contribution margin 195000 60000 2000 257000 Fixed expenses 75000 35000 22000 132000 Net income (loss) $120000 $ 25000 $(20000) $125000 Assume all of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped? $200000 O $145000 $85000 O $123000
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