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Sunland Company makes three modeis of tasers. Information on the three products is given below. Fixed expenses consist of $304,000 of common costs allocated to

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Sunland Company makes three modeis of tasers. Information on the three products is given below. Fixed expenses consist of $304,000 of common costs allocated to the three products based on relative sales, as weli as direct foxed expenses unique to each model of $30,000 (Tingler), \$80,000 (Shocker), and \$34, 100 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. (a) Compute current net income for Sunland Company. Compute net income by product line and in total for Sunland Company if the company discontinues the Stunner product line. (Hint: Allocate the $304,000 common costs to the two remaining product lines based on their relative sales.) Tingler Net Income Shocker Net income Total Net income (c) Should Sunland eliminate the Stunner product line? Should Sunland eliminate the Stunner product line? Why or why not? Net income would froms tos

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