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Sunland Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood
Sunland 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 $470000 $170000 $65000 $705000 Variable 300000 110000 58000 468000 expenses Contribution 170000 60000 7000 237000 margin Fixed expenses 75000 35000 22000 132000 Net income $95000 $25000 $(15000) $105000 (loss) Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped? $110000 $98000 $110000 $120000
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