Should Clarington eliminate the Mega-Power product line? Why or why not? Clarington v eliminate the Mega-Power product line. Elimination of the line would cause net income toCalculate current net income for Clarington Company. Current net income $ e Textbook and Media Question Part Score --/2 Calculate net income by product line and in total for Clarington Company if the company discontinues the Mega-Power product line. (Hint: Allocate the $292,000 common costs to the two remaining product lines based on their relative sales.) Stunner Double-Set Total Net income $ $ $Clarington Company makes three models of phasers. Information on the three products is given below: Stunner Double-Set Mega-Power Sales $301,000 $451,500 $188,125 Variable expenses 151,500 190,500 143,000 Contribution margin 149,500 261,000 45,125 Fixed expenses 112,500 226,500 88,000 Net income $37,000 $34,500 ($42,875 ) Fixed expenses consist of $292,000 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29,600 (Stunner), $75,800 (Double-Set), and $29,600 (Mega-Power). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is discontinued. John Liu, an executive with the company, feels the Mega-Power line should be discontinued to increase the company's net income.Should Gruden accept the special order? Why or why not? Gruden should v the special order, as it will their net income by $ e Textbook and Media Question Part Score --13 What assumption underlies the decision made in part (b)? The assumption underlying the decision is that current sales be affected if Gruden accepts the offer.Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 5,275.) Incremental contribution margin $ Incremental cost: K Fixed cost Incremental income $Gruden Company produces golf discs, which it normally sells to retailers for $12 each. The cost of manufacturing 18,000 golf discs is: Materials $9,000 Labour 28,980 Variable overhead 20,520 Fixed overhead 39,500 Total $98,000 Gruden also incurs 5% sales commission ($0.60) on each disc sold. McGee Corporation offers Gruden $9.60 per disc for 4,500 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its fixed overhead will increase from $39,500 to $45,900 due to the purchase of a new imprinting machine. No sales commission will result from the special order